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CITY OF GARDEN CITY, KANSAS
Comprehensive AnnualFinancial Report
Year EndedDecember 31, 2010
Prepared by:
Melinda A. HitzFinance Director
INTRODUCTORY
SECTION
CITY OF GARDEN CITY, KANSAS
Comprehensive Annual Financial Report
Year ended December 31, 2010
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents ..................................................................................................................................iLetter of Transmittal .............................................................................................................................vGFOA Certificate of Achievement .......................................................................................................ixOrganizational Chart ............................................................................................................................xList of Principal Officials ......................................................................................................................xi
FINANCIAL SECTION
Independent Auditors’ Report ...............................................................................................................1Management’s Discussion and Analysis ..............................................................................................3
Basic Financial Statements:
Government-wide Financial Statements:Statement of Net Assets .......................................................................................................15Statement of Activities ...........................................................................................................16
Fund Financial Statements:Balance Sheet - Governmental Funds .................................................................................18Reconciliation of the Balance Sheet to the Statement
of Net Assets - Governmental Funds ..............................................................................19Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds ...........................................................................20Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to theStatement of Activities ......................................................................................................21
Statement of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - General Fund .................................................................23
Balance Sheet- Proprietary Funds ......................................................................................24Statement of Revenues, Expenses and Changes in Fund Net
Assets - Proprietary Funds ..............................................................................................26Statement of Cash Flows - Proprietary Funds .....................................................................28Statement of Fiduciary Net Assets - Fiduciary Funds ..........................................................30
Notes to the Financial Statements ...............................................................................................31
Required Supplementary Information:
Schedule of Funding Progress - Other Post Employment Benefits .....................................64
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds ..............................................70Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Governmental Funds .......................................................76
Schedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Debt Service Fund .........................................................82
Schedules of Revenues, Expenditures and Changes in FundBalances - Budget and Actual - Nonmajor Governmental Funds:Community Trust Fund .....................................................................................................83Capital Improvements Fund .............................................................................................84Recreation Fund ...............................................................................................................85Special Trafficway Fund ...................................................................................................86Special Improvements Fund ............................................................................................87Cemetery Endowment Fund ............................................................................................88Special Recreation and Parks Fund .................................................................................89Special Alcohol Programs Fund .......................................................................................90Finnup Trust Fund ............................................................................................................91Special Liability Fund .......................................................................................................92Drug Enforcement Fund ...................................................................................................93DEA Forfeiture Fund ........................................................................................................94Community Development Loan Fund ...............................................................................95Economic Development Fund ..........................................................................................96Enhanced Wireless 911 Fund ..........................................................................................97Community Development Grant Fund ..............................................................................98
Schedules of Revenues, Expenditures and Changes inFund Balances - Budget and Actual - From Inception:2010-A GO Bond Projects ................................................................................................992010 Temporary Note Projects ......................................................................................1002009 GO Bond Projects .................................................................................................1012008-A GO Bond Projects ..............................................................................................1022007-A GO Bond Projects ..............................................................................................103
CombiningCombining
in FundCombining
Balance Sheet- Nonmajor Proprietary Funds .................................................106Statement of Revenues, Expenses and ChangesNet Assets- Nonmajor Proprietary Funds ........................................................108Statement of Cash Flows - Nonmajor Proprietary Funds ................................110
CombiningCombining
in FundCombining
Balance Sheet- Internal Service Funds ...........................................................113Statement of Revenues, Expenses and ChangesNet Assets - Internal Service Funds .................................................................114Statement of Cash Flows - Internal Service Funds ..........................................115
Combining Statement of Changes in Assets andLiabilities - Agency Accounts .........................................................................................117
Supplementary Information:Schedule of Investments .....................................................................................................119Comparison of Cash Balances with Encumbrances and
Composition of Cash ....................................................................................................120Schedule of Insurance ........................................................................................................122
STATISTICAL SECTION
Financial Trends:Net Assets by Components .................................................................................................124Changes in Net Assets ........................................................................................................126Govern mental Activities Tax Revenues by Source .............................................................129Fund Balances of Governmental Funds .............................................................................130Changes in Fund Balances of Governmental Funds ..........................................................132General Governmental Tax Revenues by Source ..............................................................135
Revenue Capacity:Assessed Value and Estimated Actual Value of Taxable Property ....................................136Retail Sales and Retail Sales Tax Rate .............................................................................136Property Tax Rates .............................................................................................................138Principal Property Taxpayers and Principal Sales Taxpayers by NAICS Code ..................140Property Tax Levies and Collections ...................................................................................141
Debt Capacity:Ratios of Outstanding Debt by Type ...................................................................................142Ratios of General Bonded Debt Outstanding ......................................................................144Direct and Overlapping Governmental Activities Debt ........................................................145Legal Debt Margin Information ............................................................................................146Pledged-Revenue Coverage ...............................................................................................148
Demographic and Economic Information:Demographic and Economic Statistics ...............................................................................149Principal Employers ............................................................................................................150
Operating Information:Full-time Equivalent City Government Employees by Function ..........................................151Operating Indicators by Function ........................................................................................152Capital Asset Statistics by Function ....................................................................................153
SINGLE AUDIT SECTION
Independent Auditors’ Report on Internal Control OverFinancial Reporting and on Compliance and OtherMatters Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards ..............................................155
Independent Auditors’ Report on Compliance with RequirementsThat Could Have a Direct and Material Effect on Each MajorProgram and on Internal Control Over Compliance inAccordance with OMB Circular A-133 .......................................................................................157
Schedule of Findings and Questioned Costs ...................................................................................159
Corrective Action Plan and Comments on Audit ResolutionMatters Relating to the Federal Award Programs .....................................................................161
Schedule of Expenditures of Federal Awards ..................................................................................162
Notes to Schedule of Expenditures of Federal Awards ...................................................................163
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CITY COMMISSION
JAMES R. BEHAN,Mayor
DAVID D. CRASE
JOHN DOLL
DAN FANKHAUSER
NANCY J. HARNESS
MATTHEW C. ALLENCity Manager
MELINDA A. HITZ, CPAFinance Director
RANDALL D. GRISELLCity Counselor
CITY ADMINISTRATIVECENTER
301 N. 8TM
P.O. Box 998GARDEN CITY, KS
67846-0998620.276.1160
FAX 620.276.1169vww.garden-city.org
May 27, 2011
The Honorable Mayor,City Commissioners and Citizensof the City of Garden CityGarden City, Kansas 67846
This is the Comprehensive Annual Financial Report (CAFR) of the City of Garden City, Kansas,(the City) for the calendar year ended December 31, 2010. This report was prepared by the City’sService and Finance Department. Management assumes full responsibility for the completenessand reliability of the information contained in this report, based upon a comprehensive frameworkof internal control that it has established for this purpose. Within that framework and because thecost of internal control should not exceed anticipated benefits, the objective is to providereasonable, rather than absolute, assurance that the financial statements are free of any materialmisstatements.
Independent Audit
Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financialrecords, and transactions of all administration departments of the City by independent certifiedpublic accountants selected by the City Commission. This report is published to fulfill thatrequirement for the fiscal year ended December 31, 2010.
Lewis, Hooper & Dick, LLC, Certified Public Accountants, have issued an unqualified ("clean")opinion on the City of Garden City’s financial statements for the year ended December 31, 2010.The independent auditors’ report is located at the front of the financial section of this report.
Management’s Discussion and Analysis
Management’s discussion and analysis (MD&A) immediately follows the independent auditors’report and provides a narrative introduction, overview, and analysis of the basic financialstatements. The MD&A compliments this letter of transmittal and should be read in conjunctionwith it.
Profile of the Government
The City of Garden City, incorporated in 1883, is located in the southwest part of the state. Itcurrently occupies 8.71 square miles and serves a population of 30,685. The City is empowered tolevy a property tax on both real and personal property located within its boundaries. It is alsoempowered by state statute to extend its corporate limits by annexation, which it has done fromtime to time.
The City operates under the commission-manager form of government. Policy-making andlegislative authority are vested in a governing commission (Governing Body) consisting of fivemembers, all elected on a non-partisan basis. The Governing Body appoints a City Manager, whoin turn appoints the heads of the various departments. Members of the Governing Body servefour-year or two-year terms, with three members elected every two years. The Governing Bodyappoints the mayor annually from its members for the purposes of chairing the meetings andinformally serving as the spokesperson for the Governing Body.
Governmental Services
The City provides its citizens with various municipal services commonly associated with municipalities.The public safety area provides police, fire and emergency dispatch services. Construction andmaintenance of the City’s street and highway network is the responsibility of the public works area. Thecommunity development area has the responsibility of maintaining the structural standards of thecommunity through the planning and enforcement of the City’s building codes and comprehensive landuse plan. The development and maintenance of the City’s parks, zoo and recreation programs andfacilities is the responsibility of the parks, zoo and recreation departments. The finance andadministration area is responsible for the general and financial administration of the City and includes thecourts, the prosecution of violations of City codes and ordinances, the legal area of general counsel,human resource administration and information technology. Additionally, the City provides utilityfunctions for water, wastewater, stormwater, solid waste, drainage, and electric utilities. More specializedareas include cemetery, airport, golf course, and GIS.
The City also is financially accountable for a recreation commission and housing authority, both of whichare legally separate entities which are reported separately within the City’s financial statements. Thesecomponent units are the Garden City Recreation Commission and Garden City Housing Authority.Additional information on these legally separate entities can be found in the notes to the financialstatements (see Note 1, item A).
Budgetary Controls
The City’s budget is prepared on the modified accrual basis which is modified further by an encumbrancesystem of accounting as required by applicable state statutes. The City Manager annually presents aproposed budget to the City Commission for their review and consideration. The City Manager’sproposed budget sets forth the proposed funding level of the City’s various operating and public serviceprograms. A series of public meetings are held by the City Commission to review the proposed budget,as well as alternative spending proposals the staff or Commissioners may also wish the City Commissionto consider. After a public hearing to solicit citizens’ comments on the proposed budget and amendmentsmade by the City Commission, the City Commission adopts the final budget. The final budget isappropriately controlled through an accounting system to ensure effective fiscal management andaccountability.
Local Economy
Major industries located within the City’s boundaries or in close proximity are agricultural and ag-industrialbased. In addition, the City is a regional center for southwest Kansas resulting in several financialinstitutions, medical facilities, and retail centers.
Unemployment is relatively stable. During the past ten years, the unemployment rate rose from an initialrate of 2.8% in 1999, to a decade high of 10.59% in 2001, only to descend once more to the current rateof 4.2%. The 2001 high resulted from a fire and the resulting facility shutdown of ConAgra BeefProcessors, Inc.’s facility and loss of its 2,300 jobs. The unemployment rate is expected to either remainstable or decrease still further in the near term as new economic development and job opportunity occurs.
Economic development is obviously a very important concern of cities in Kansas, and particularly as astrategy to counter an uncertain national economy. In 2010, the community continued to see a markedincrease in the number of inquiries and meetings with clients that indicated potential for additionaldevelopment in the area. The City is involved with the other partner agencies which form the FinneyCounty Economic Development Corporation in the recruitment of new employers and expansion ofexisting industry.
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Long-term Financial Planning
The City of Garden City has been steadily growing over the last two decades. As a result, the need toprovide for sound and appropriate growth must not overshadow the need to maintain the existinginfrastructure - the backbone of our future. For over twenty years, the City has had a long-term capitalimprovement program, looking at not just the immediate needs, but also at the ensuing five-year period.The Capital Improvement Plan (CIP) is one of the more critical policy statements adopted by theGoverning Body. The primary funding sources for capital projects include regular departmental operatingbudgets, bonding and partnering with the Community College, County, State and Federal agencies.
One of the City Commission goals has been to increase citizen involvement in their City government. TheCIP process, for both the 2009 and 2010 programs, again stepped to the front in the area of citizeninvolvement. Citizen input was actively sought through the opportunity to suggest capital projects; acitizen committee then reviewed all the proposed projects before the CIP was reviewed by the GoverningBody or any projects were submitted for approval in the budget. The Citizen’s Committee was verycognizant of the project costs and the effect on the City’s mill levy.
Relevant Financial Policies
In 2010, City management and staff continued to review current budgeting policies, purchasing practices,debt policies, cost savings, efficiency alternatives, options for privatizing and consolidation of services,revenue enhancement, improved inventory management systems, and cash management practices withthe thought in mind of providing a proper use of assets based on need. As the State continues to see theState revenues decline, the City is required to manage the combined burden of lost statutory revenuesfrom the State and the assumption of mandated responsibilities from State and Federal agencies. Withguidance by the elected City Commission, the City is committed to continuing to provide both a high leveland quality of service while simultaneously taking a conservative approach to the capital planningnecessary to meet projected growth.
Another City Commission goal was to develop a financial forecasting model for the City’s tax supportedfunds. This forecast model provides the City Commission and staff with the ability to test the impact ofdifferent scenarios on Garden City’s financial future. This model has been developed and in use for the2012 budget preparation.
Major Initiatives for the Year
In 2010, the City of Garden City continued a Citizen-based Capital Improvement Planning process. Thisis the fifth year for the City using this technique that precedes the annual budget season with a blend ofcitizen input tools, commission goal setting, multi-year financial forecasting and multi-year debtmanagement analysis. Within this framework, the City Commission authorized capital investment of$6,500,000. Major capital improvement projects in 2010 were the Taylor Avenue KLINK reconstructionproject, reconstruction of a segment of Mary Street east of Taylor Avenue to Eighth Street, widening ofMary Street at Buffalo Way Boulevard - the entrance road to the new High School, the final phase ofTaxiway A widening and reconstruction at Garden City Regional Airport and the Advanced MeteringInfrastructure project which installed new radio read water and electric meters.
As referenced previously, increased citizen involvement in City government is a goal of the GoverningBody. 2010 saw the third session of the Citizen’s Academy, an up-close and personal view of Citygovernment taught by City Staff. As a result of the 2008 and 2010 Citizen surveys, which show that ourcitizens want enhanced communications with their local government, the City continued using two socialnetworking venues - Facebook and Twitter.
The Planning and Community Development Department is continuing to re-structure processes andimplement changes begun in fiscal year 2006 at the request of the City Commission in an effort toimprove customer service. The department is preparing to meet the demands of pending population
vii
growth, along with residual growth in the commercial sector while actively implementing the CityComprehensive Plan that was completed in 2009.
Quality of life issues remain a focus of City government. The South Main Street Pathway and the FinnupDrive Walking Trail along the south side of Finnup Park were completed in 2010; these pathways connectto our path & trail system and link our largest park, zoo and several ball fields, while landscaping thesouthern entrance into the City. The City’s new Animal Shelter was opened in February of 2010.
Other 2010 initiatives were geared towards enhancing our standing as the regional center of southwestKansas. Improvements at Garden City Regional Airport improve our opportunities for better commercialair service. Great Lakes Aviation provided service to Kansas City and Denver; enplanements againexceeded the 10,000 passenger level required to maintain our primary airport status. Completion of thetaxiway projects improved our capability to handle increased volume of larger aircraft and provideenhanced air service to the community.
Awards
The Government Finance Officers Association (GFOA) of the United States and Canada awarded aCertificate of Achievement for Excellence in Financial Reporting to the City for the CAFR for the fiscalyear ended December 31, 2009. The City has been the recipient of this award fifteen times since the firstaward was granted for the CAFR for the year ended December 31, 1994. In order to be awarded aCertificate of Achievement, a governmental unit must publish an easily readable and efficiently organizedCAFR that satisfies both accounting principles generally accepted in the United States and applicablelegal requirements.
A certificate is valid for a period of one year. We believe our current CAFR continues to meet theCertificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine itseligibility for another certificate.
Acknowledgments
The preparation of this report would not have been possible without the efficient and dedicated servicesof the entire staff of the Service and Finance Department. In addition several members of theManagement team contributed to the preparation of this transmittal letter. We truly appreciate allcontributions to the preparation of this report. Credit also must be given to the Mayor and CityCommission for their unfailing support of City staff as we take necessary steps to ensure the higheststandards of professionalism in the management of the City of Garden City.
Respectft ~itted,
MattheCity Manager
Melinda A. HitzFinance Director
viii
Certificate ofAchievementfor Excellencein FinancialReporting
Presented to
City of Garden CityKansas
For its Comprehensive AnnualFinancial Report
for the Fiscal Year Ended
December 31, 2009
A Certificate of Achievement for Excellence in FinancialReporting is presented by the Government Finance Officers
Association of the United States and Canada togovernment units and public employee retirementsystems whose comprehensive annual financial
reports (CAFRs) achieve the higheststandards in government accounting
and financial reporting.
President
Executive Director
ix
CITY OF GARDEN CITY, KANSASORGANIZATIONAL CHART
I RECREA~ON COMMISSION
I LOCAL NOUS~N~ AUT.OR~TY
[ MUNICIPAL JUDGE
I
IADMINISTRATION DEPARTMENT
1. CITY MANAGER’S OFFICE2. HUMAN RESOURCES3. INFORMATION TECHNOLOGY4.COMMUNICATIONS
POLICE DEPARTMENT
1. PATROL2. INVESTIGATION3.SUPPORT SERVICES4. COMMUNITY SERVICES
APPOINTS
APPOINTS
VOTERS
CITYCOMMISSION
CITY MANAGER t
APPOINTS
APPOINTS
CITY COUNSELOR J
STAFF1. ASSISTANT CITY MANAGER2. DIRECTOR OF FINANCE3. DIRECTOR OF HUMAN RESOURCES4.DIRECTOR OF PUBLIC WORKS5. DIRECTOR OF PUBLIC UTILITIES
I
IF!RE DEPT.
1. FIRE COMPANY2. CODE INSPECTION3.ARSON INVESTIGATION
MUNICIPAL COURT
I.AIRPORT
PUBLIC LANDS DIVISION
1, CEMETERY 2. GOLF COURSE
~. ,zoo 4. SWiMMiNG POOL ""
ClT~Y IpROSECUTOR
IPLAN,,.Ni ,NG & COMMUNITYDEVELOPMENT DEPT.
1. CODE ENFORCEMENT2. FCEDC
ISERVICE & FINANCE ,DEPT.
1. CITY CLERK2.ACCOUNTING & PAYROLL3. DATA PROCESSING4.FINANCE DIVISION5. UTILITY ACCOUNTING &
METER READING
IPUBLIC UTILITIES DIVISION
1. ELECTRIC 2. WATER UTILITYUTILITY
3. SEWAGE TREATMENT4. SEWER MAINTENANCE
IPUBLIC WORKS DIVISION
1. ENGINEERING DEPARTMENT2. SOLID WASTE DEPARTMENT3. STREET DEPARTMENT4. PARK DEPARTMENT5. STORM WATER DEPARTMENT
CITY OF GARDEN CITY, KANSAS
List of Principal OfficialsDecember 31, 2010
Mayor
James R. Behan
City Commissioners
David D. CraseJohn Doll
Dan FankhauserNancy J. Harness
City Administration
Matthew C. Allen, City ManagerMelinda A. Hitz, CPA, Finance Director
Randall D. Grisell, City Counselor
xi
FINANCIAL
SECTION
LEWIS,HOOPER&DICK,.,.ocertified public accountants
INDEPENDENT AUDITORS’ REPORT
405 North Sixth Street I P.O. Box 699Garden City, KS 67846
620-275-9267 ] 800-627-0636Fax: 620-275-8936 1 www.lhd.com
CPAsCharles H. Claar, Jr, CPA
Theresa Dasenbrock, CPA, CFEDavid L. Hetrick, CPA
Steven D. Josserand, CPADonald R. Linville, CPAGary A. Schlappe, CPA
Rodney Van Norden, CPA
Lisa L. Axman, CPASue A. Bradley, CPA
Susan A. Burgardt, CPAShannon N. Euliss, CPA
Tracey Homm, CPA, CSEPKimberly A. Roth, CPAKristin J. Sekavec, CPALaura G. Voran, CPA
Monica J. Wilson, CPA
The Honorable Mayor,City Commissioners and City Manager
Garden City, Kansas 67846
We have audited the accompanying financial statements of the governmental activities, thebusiness-type activities, the aggregate discretely presented component units, each majorfund, and the aggregate remaining fund information of the City of Garden City, Kansas, andits aggregate discretely presented component units as of and for the year ended December31, 2010, which collectively comprise the City’s basic financial statements as listed in thetable of contents. These financial statements are the responsibility of the City of GardenCity’s management. Our responsibility is to express opinions on these financial statementsbased on our audit. We did not audit the financial statements of the Garden City HousingAuthority, which represents 71.0% and 26.8%, respectively, of the assets and revenues ofthe component units of the City of Garden City, Kansas. Those financial statements wereaudited by other auditors whose report thereon has been furnished to us, and our opinion,insofar as it relates to the amounts included for the Garden City Housing Authority, is basedsolely on the report of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America, the Kansas Municipal Audit Guide, and the standards applicable tofinancial audits contained in Government Auditinq Standards, issued by the ComptrollerGeneral of the United States. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our audit and thereport of the other auditors provide a reasonable basis for our opinions.
In our opinion, based on our audit and the report of other auditors, the financial statementsreferred to above present fairly, in all material respects, the respective financial position ofthe governmental activities, the business-type activities, the aggregate discretely presentedcomponent units, each major fund, and the aggregate remaining fund information of the Cityof Garden City, Kansas, as of December 31, 2010, and the respective changes in financialposition and cash flows, where applicable, thereof and the respective budgetary comparisonfor the general fund for the year then ended in conformity with accounting principles generallyaccepted in the United States of America.
In accordance with Government Auditinq Standards, we have also issued a report dated May27, 2011, on our consideration of the primary government of the City of Garden City, Kansas,internal control over financial reporting and our tests of its compliance with certain provisionsof laws, regulations, contracts, and grant agreements and other matters. The purpose of thatreport is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on the internalcontrol over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered inassessing the results of our audit.
The Honorable Mayor,City Commissioners and City Manager
Page 2
The management’s discussion and analysis, and schedule of funding progress on pages 3through 12 and page 65 are not a required part of the basic financial statements but aresupplementary information required by accounting principles generally accepted in the UnitedStates of America. We have applied certain limited procedures, which consisted principallyof inquiries of management regarding the methods of measurement and presentation of therequired supplementary information. However, we did not audit the information and expressno opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the City of Garden City, Kansas, basic financial statements. Theintroductory section; combining and individual nonmajor fund financial statements, includingthe budgetary comparison schedules; supplementary information and statistical section arepresented for purposes of additional analysis and are not a required part of the basicfinancial statements. The accompanying Schedule of Expenditures of Federal Awards ispresented for purposes of additional analysis as required by the U.S. Office of Managementand Budget Circular A-133, Audits of States, Local Governments, and Non-ProfitOr.qanizations, and is also not a required part of the basic financial statements of the City ofGarden City, Kansas. The combining and individual nonmajor fund financial statements,including the budgetary comparison schedules; supplementary information and schedule ofexpenditures of federal awards have been subjected to the auditing procedures applied in theaudit of the basic financial statements and, in our opinion, are fairly stated in all materialrespects in relation to the basic financial statements taken as a whole. The introductorysection and statistical tables have not been subjected to the auditing procedures applied inthe audit of the basic financial statements and, accordingly, we express no opinion on them.
LEWIS, HO & DICK, LLC
May 27,2011
Management’s Discussion and Analysis
As management of the City of Garden City, Kansas, we offer readers of the City of Garden City’s financialstatements this narrative overview and analysis of the financial activity of the City of Garden City for thefiscal year ended December 31, 2010. We encourage readers to consider the information presented herein conjunction with additional information that we have furnished in our letter of transmittal, which can befound on pages v through viii of this report.
Financial Highlights¯ The assets of the City of Garden City exceeded its liabilities at the close of the most recent fiscal year
by $106,064,876 (net assets). Of this amount, $19,062,132 (unrestricted net assets) may be used tomeet the City’s ongoing obligations to citizens and creditors.
¯ The City’s total net assets increased by $3,078,168. Approximately 85% of this increase wasattributable to the investment in fixed assets and infrastructure in the City’s departmental operations.
¯ As of the close of the current fiscal year, the City of Garden City’s governmental funds reportedcombined ending fund balances of $10,277,795, a decrease of $771,848 in comparison with the prioryear. Approximately 98.2% of this total amount is available for spending at the City’s discretion(unreserved fund balance).
¯ At the end of the current fiscal year, unreserved, undesignated fund balance for the general fund was$5,100,420, or 30.0% of total general fund expenditures.
¯ The City of Garden City’s total debt increased by $2,143,705 (9.3%) during the current fiscal year.The key factor in this increase was the issuance of $3,382,000 of general obligation bonds for internalimprovements in the utility funds.
Overview of the Financial StatementsThis discussion and analysis is intended to serve as an introduction to the City of Garden City’s basicfinancial statements. The City of Garden City’s basic financial statements are comprised of threecomponents: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to thefinancial statements. This report also contains other supplementary information in addition to the basicfinancial statements themselves.
Govemment-wide Financial StatementsThe government-wide financial statements are designed to provide readers with a broad overview of theCity of Garden City’s finances, in a manner similar to a private-sector business.
The Statement of Net Assets presents information on all of the City’s assets and liabilities, with thedifferences between the two reported as net assets. Over time, increases or decreases in net assets mayserve as a useful indicator of whether financial position of the City of Garden City is improving ordeteriorating.
The Statement of Activities presents information showing how the City’s net assets changed during themost recent fiscal year. All changes in net assets are reported as soon as the underlying event givingrise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expensesare reported in this statement for some items that will only result in cash flows in future fiscal periods(e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Garden City that areprincipally supported by taxes and intergovernmental revenues (governmental activities) from otherfunctions that are intended to recover all or a significant portion of their costs through user fees andcharges (business-type activities). The governmental activities of the City include general government,public safety, public works, parks and recreation. The business-type activities of the City include theelectric utility, water and sewer utility, airport, solid waste utility, golf course operation and drainage utility.
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The government-wide financial statements include not only the City of Garden City itself (known as theprimary government), but also a legally separate recreation commission and a legally separate housingauthority for which the City is financially accountable. Financial information for these component units isreported separately from the financial information presented for the primary government itself. See Note1, item A, in the notes to the financial statements for more details regarding the relationship betweenthese entities and the City.
The government-wide financial statements can be found on pages 15 through 17 of this report.
Fund Financial StatementsA fund is a grouping of related accounts that is used to maintain control over resources that have beensegregated for specific activities or objectives. The City of Garden City, like other state and localgovernments, uses fund accounting to ensure and demonstrate compliance with finance-related legalrequirements. All of the funds of the City of Garden City can be divided into three categories:governmental funds, proprietary funds and fiduciary funds.
Governmental FundsGovernmental funds are used to account for essentially the same functions reported as governmentalactivities in the government-wide financial statements. However, unlike the government-wide financialstatements, governmental fund financial statements focus on near-term inflows and outflows of spendableresources, as well as on balances of spendable resources available at the end of the fiscal year. Suchinformation may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financialstatements, it is useful to compare the information presented for governmental funds with similarinformation presented for governmental activities in the government-wide financial statements. By doingso, readers may better understand the long-term impact of the City’s near-term financing decisions. Boththe governmental fund balance sheet and the governmental fund statement of revenues, expendituresand changes in fund balances provide a reconciliation to facilitate this comparison between governmentalfunds and governmental activities.
The City of Garden City maintains twenty-four individual governmental funds. Information is presentedseparately in the governmental fund balance sheet and in the governmental fund statement of revenues,expenditures and changes in fund balances for the general fund and the debt service fund, which areconsidered to be major funds. Data from the other twenty-two governmental funds are combined into asingle, aggregated presentation. Individual fund data for each of these nonmajor governmental funds isprovided in the form of combining statements elsewhere in this report.
The City of Garden City adopts an annual appropriated budget for its general fund. A budgetarycomparison statement has been provided for the general fund to demonstrate compliance with thisbudget.
The basic governmental financial statements can be found on pages 18 through 23 of this report.
Proprietary FundsThe City of Garden City maintains two different types of proprietary funds: enterprise funds and internalservice funds. Enterprise funds are used to report the same functions presented as business-typeactivities in the government-wide financial statements. The City uses enterprise funds to account for itselectric utility fund, water and sewer utility fund, airport fund, solid waste utility fund, recreation fund anddrainage utility fund. Internal service funds are an accounting device used to accumulate and allocatecosts internally among the City’s various functions. The City uses internal service funds to account for itsself-insurance activities: the health insurance fund and the workers compensation fund. Because both ofthese services predominantly benefit governmental rather than business-type functions, they have beenincluded within governmental activities in the government-wide statements.
Proprietary funds provide the same type of information at the government-wide financial statements, onlyin more detail. The proprietary fund financial statements provide separate information for the electricutility fund, water and sewer utility fund, and airport fund, all of which are considered to be major funds of
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the City of Garden City. Conversely, the other three enterprise funds are combined into a single,aggregated presentation, as are the two internal service funds. Individual fund data for each of thesenonmajor enterprise funds and internal service funds is provided in the form of combining statementselsewhere in this report.
The basic proprietary fund financial statements can be found on pages 24 through 29 of this report.
Fiduciary FundsFiduciary funds are used to account for resources held for the benefit of parties outside the City ofGarden City. Fiduciary funds are not reflected in the government-wide financial statements because theresources of those funds are not available to support the City’s own programs. The accounting used forfiduciary funds is much like that used for proprietary funds.
The basic fiduciary funds financial statements can be found on page 30 of this report.
Notes to the Financial StatementsThe notes provide additional information that is essential to a full understanding of the data provided inthe government-wide and fund financial statements. The notes to the financial statements can be foundon pages 31 through 63 of this report.
Other InformationThe combining statements referred to earlier in connection with nonmajor governmental funds, nonmajorenterprise funds and internal service funds are presented immediately following the notes to the financialstatements. Combining and individual fund statements and schedules can be found on pages 70 through117 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position.In the case of the City of Garden City, assets exceeded liabilities by $106,064,876 at the close of themost recent fiscal year.
By far the largest portion of the City of Garden City’s net assets (80.4%) reflects its investment in capitalassets (e.g., land, property, plant and equipment); less any related debt used to acquire those assets thatis still outstanding. The City uses these capital assets to provide services to citizens; consequently, theseassets are not available for future spending. Although the City’s investment in its capital assets isreported net of related debt, it should be noted that the resources needed to repay this debt must beprovided from other resources, since the capital assets themselves cannot be used to liquidate theseliabilities.
The balance of this page intentionally left blank.
5
Combined net assets of the City at December 31, 2010 and 2009, were:
City of Garden City’s Net Assets
2010 2009Govemmental Business-Type Govemmental Business-Type
Activities Activities Total Activities Activities TotalCurrent and other assets $ 17,530,575 $ 14,247,687 $ 31,778,262 $ 18,306,688 $ 12,874,932 $ 31,181,620Capital assets 41,406~500 68,984~657 110,391,157 40,696,025 64~ 154~660 104,850,685
Total assets $ 58,937,075 $ 83,232,344 $ 142,169,41~9 $ 59,002,71~3 $ 77,029,592 $ 136,032,30~5
Long-term liabilities $ 9,536,794 $ 14,111,866 $ 23,648,660 $ 9,643,225 $ 11,913,956 $ 21,557,181Other liabilities 8,694,305 3,761,578 12,455,883 8,148,046 3,340,370 11,488,416
Total liabilities $ 18,231,099 $ 17,873,444 $ 36,104,543 $ 17,791,271 $ 15,254,326 $ 33,045,597
Net assets:Invested in captial assets,
net of related debt $ 31,975,036 $ 53,353,800 $ 85,328,836 $ 29,427,337 $ 51,227,064 $ 80,654,401Restricted for:
Debt service 189,267 1,484,641 1,673,908 213,341 1,234,110 1,447,451Unrestricted 8,541,673 10,520,459 19,062,132 11,570,764 9,314,092 20,884,856
Total net assets $ 40 705,976 $ 65,358 900 $ 106,064,876 $ 41,211,442 $ 61,775,266 $ 102,986,708
An additional portion of the City of Garden City’s net assets (1.6%) represents resources that are subjectto external restrictions on how they may be used. The remaining balance of unrestricted net assets($19,062,132) may be used to meet the City’s ongoing obligations to citizens and creditors.
At the end of both the current and prior fiscal years, the City of Garden City is able to report positivebalances in all three categories of net assets, both for the government as a whole, as well as for itsseparate governmental and business-type activities.
There was an increase of $250,531 in restricted net assets reported in connection with the City of GardenCity’s business-type activities. This increase is a result of new debt being issued.
The City’s net assets increased by $3,078,168 during the current fiscal year. About 85% of this increasewas attributable to the investment in fixed assets and infrastructure in the City’s departmental operations.The remainder of this growth largely reflects a decrease in expenses for governmental activities and therapid rate of debt principal payments.
Governmental ActivitiesGovernmental activities decreased the City of Garden City’s net assets by $505,466. Key elements ofthis decrease are as follows:
The balance of this page intentionally left blank.
City of Garden City’s Changes in Net Assets
2010 2009Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities TotalRevenues:Program revenues:
Charges for services $ 2,060,687 $ 33,839,842 $ 35,900,529 $ 1,885,994 $ 30,775,279 $ 32,661,273Operating grants and
contributions 1,657,675 1,629,530 3,287,205 2,403,258 3,432,840 5,836,098Capital grants and
contributions 837,029 837,029 615,363 615,363General revenues:
Property taxes 5,193,216 471,787 5,665,003 4,978,312 419,206 5,397,518Sales taxes 8,505,990 8,505,990 7,843,971 7,843,971Other taxes 1,469,234 1,469,234 1,529,905 1,529,905
Other 476,264 , 478~313 954~577 525~646 211,540 737 186
Totalrevenues 20,200,095 ., 36~419,472 56,619,567 19~782,449 34~838,865 54,621~314
Expenses:General government 4,698,266 4,698,266 6,699,734 6,699,734Public safety 10,520,505 10,520,505 9,631,721 9,631,721Pu blic works 3,997,877 29,939,161 33,937,038 2,768,845 27,519,462 30,288,307Parks and recreation 2,766,802 763,293 3,530,095 3,854,085 708,671 4,562,756Interest on long-term debt 400,611 454,884 855,495 372,770 475,650 848,420
Total expenses 22~384,061 31,157,338 53t541~399 23,327~155 28~703,783 52~030~938
Increase (decrease) in net assetsbefore transfers: (2, t 83,966) 5,262,134 3,078,168 (3,544,706) 6,135,082 2,590,376
Transfers 1,678,500 (1,678,500) 2,030,400 (2,030,400)
Change in net assets (505,466) 3,583,634 3,078,168 (1,514,306) 4,104,682 2,590,376Nat assets, beginning of year 41,211,442 61,775,266 102,986,708 42,725,748 57,670r584 100r396,332
Net assets, end of year $ 40,705,976 $ 65,358,900 $ 106,064,876 $ 41,211,442 $ 61,775,266 $ 102,986,708
¯ Property taxes of the governmental activities increased $214,904 (4.0%) during the year. Thisincrease is primarily due to mill levy and property valuation increases over 2009.
¯ Sales tax collections increased $662,019 during the year, an 8.4% increase from 2009 sales taxcollections. The City’s total sales tax collections were $8,505,990.
The following chart compares expenses with program revenues for the various governmental activities ofthe City.
2010 Expenses and Program Revenues -Governmental Activities
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
General government Public safety Public works Parks and recreation
IExpenses IIProgram Revenues I
7
Interest on long-termdebt
For the most part, increases in expenses for general government and public safety closely paralleledinflation and growth in the demand for services. Expenses in public works and parks and recreationincreased as more projects were taken on during the current fiscal year.
The following graph shows the composition of 2010 revenues by sources for the governmental activities.
2010 Revenues by Sources - Governmental Activities
~., Charges forOth~ u[ner services
7% 3%g grants/
contributions8%
,--.._Capital grants/Sales contributions
42% ..... 4%
Property taxes26%
Business-type ActivitiesBusiness-type activities increased the City of Garden City’s net assets by $3,583,634, accounting for116.4% of the total growth in the City’s net assets. The key element of this increase was the ability of theutility funds to operate at a profit by monitoring rates charged for services and expenses incurred.
The following chart compares expenses with program revenues for the various business-type activities ofthe City.
2010 Expenses and Program Revenues - Business-type Activities
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Electric Water and sewer Airport Solid waste Golf course Drainage
I ¯ Expenses ¯ Program Revenues
8
The following graph shows the composition of 2010 revenues by sources for the business-type activities.
2010 Revenues by Sources - Business-type Activities
esforservices
93%
Other1%
Property taxes1%
g grants/contributions
5%
Financial Analysis of the Government’s Funds
As noted earlier, the City of Garden City uses fund accounting to ensure and demonstrate compliancewith finance-related legal requirements.
Governmental FundsThe focus of the City of Garden City’s governmental funds is to provide information on near-term inflows,outflows and balances of spendable resources. Such information is useful in assessing the City’sfinancing requirements. In particular, unreserved fund balance may serve as a useful measure of agovernment’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Garden City’s governmental funds reported combinedending fund balances of $10,277,795, a decrease of $771,848 in comparison with the prior year.Approximately 98.2% of this total amount ($10,088,528) constitutes unreserved, undesignated fundbalance, which is available for spending at the City’s discretion. The remainder of the fund balance isreserved to indicate that it is not available for new spending because it has already been committed topay debt service ($189,267).
The general fund is the chief operating fund of the City of Garden City. At the end of the current fiscalyear, unreserved, undesignated fund balance of the general fund was $5,100,420, equal to the total fundbalance. As a measure of the general fund’s liquidity, it may be useful to compare the unreserved fundbalance to total fund expenditures. The unreserved, undesignated fund balance represents 30.0% oftotal general fund expenditures.
The fund balance of the City of Garden City’s general fund increased by $169,864 during the currentfiscal year. Key factors in this increase are as follows:
¯ Taxes increased $843,118.¯ Donations increased $352,270.¯ Police and municipal court revenues increased $105,386¯ Expenditures for general government increased $393,518.¯ Expenditures for public safety decreased $47,781.
9
¯ Expenditures for parks and recreation increased $137,665.¯ Transfers out decreased $254,212.
The debt service fund has a total fund balance of $189,267, all of which is reserved for the payment ofdebt service. The net decrease in the fund balance during the current year in the debt service fund was$24,074. This resulted from a decrease in the amount of taxes and special assessments received for theyear.
Proprietary FundsThe City of Garden City’s proprietary funds provide the same type of information found in thegovernment-wide financial statements, but in more detail.
Unrestricted net assets of the electric utility at the end of the year amounted to $6,838,573, and those forthe water and sewer utility amounted to $1,518,041. In addition, the airport fund’s unrestricted net assetsat the end of the year amounted to $495,827; the other enterprise funds’ unrestricted net assets at theend of the year totaled $1,668,018. The total growth in net assets for all of the City’s enterprise fundswas $3,583,634. This total includes growth in net assets of the electric utility of $756,355 and a growth innet assets of the water and sewer utility of $1,097,867. In addition, the airport experienced a growth innet assets of $1,291,298. Other factors concerning the finances of these funds have already beenaddressed in the discussion of the City of Garden City’s business-type activities.
General Fund Budgetary HighlightsThe legally adopted budget for the general fund was not amended by the City Commission during 2010.However, departments within the City are allowed to transfer budget authority between line items andbetween cost centers within a department. In addition, budget authority may be transferred out of costcenters to reflect insurance savings, budget cuts, etc. As a result of these budget transfers, the originalbudget and the final budgets may not be the same in some cost centers.
The following revenue and expenditure categories experienced significant differences between the finalbudget amount and the actual amount. The explanation of the difference is also included.
CATEGORYLicenses and permits
Use of money and property
General administration and capitalimprovements expenditures
Police expenditures
Fire
Parks and zoo expenditures
EXPLANATIONLicenses and permits were budgeted conservatively due to theuncertain economy, but actual collections increased.Use of money and property was less than budgeted due todecreased investment rates and reimbursements were reportedagainst expenditures.General administration expenditures were $669,917 less thanbudgeted and capital improvements were $1,973,865 less thanbudgeted due to the budget process which requires anoverstatement of expenditures to allow for cash carryovers.Police expenditures were $401,349 less than budgeted due tovacancies in personnel throughout the year in all departments.Fire expenditures were $135,511 less than budgeted due tounfilled positions and employee benefits for positions not hired.Parks and zoo expenditures were $270,635 less than budgeteddue to vacancies in personnel.
10
Capital Asset and Debt Administration
Capital AssetsThe City of Garden City’s investment in capital assets for its governmental and business-type activities asof December 31, 2010, was $110,391,157 (net of accumulated depreciation). This investment in capitalassets includes land; buildings and system; improvements; machinery and equipment; park, zoo andrecreational facilities; and streets and bridges. The total increase in the City’s investment in capitalassets for the current fiscal year was 5.3% over the 2009 total (a 1.7% increase for governmentalactivities and a 7.5% increase for business-type activities).
The following chart breaks down the City’s capital assets balance into the various categories of assets.
City of Garden City’s Capital Assets(net of depreciation)
2010 2009Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities TotalLand $ 1,183,776 $ 361,870 $ 1,545,646 $ 1,183,776 $ 36t,870 $ 1,545,646Construction in progress 328,639 328,639 1,054,391 1,054,391Buildings and improvements 8,464,583 66,913,850 75,378,433 7,566,036 62,101,276 69,667,312Vehicles and equipment 3,302,808 1,708,937 5,011,745 3,140,142 1,691,514 4,831,656Infrastructure 28,126~694 ~ 28,126,694 27,751,680 27,751,680
Totalcapitalassets $ 41,406,500 $ 68,984,657 $ 110,391,157 $ 40,696,025 $ 64,154,660 $ 104,850,685
Major capital asset events during the current fiscal year included the following:
Armory buildingFinnup Center additionSAP barn2011 Pierce Freightline tankerAirport improvementsElectrical infrastructureAMI project - electricalAMI project - waterWater infrastructure
352,270618,885204,OO0164,250
1,715,2961,096,5631,635,9921,729,609
263,384
Total $ 7,780,249
Additional information on the City of Garden City’s capital assets can be found in Note 1, item D on page37-38, and Note 3, item C on pages 46 through 50 of this report.
Long-term DebtAt the end of the current fiscal year, the City of Garden City had total bonded debt outstanding of$25,100,000, which was backed by the full faith and credit of the City.
General obligation bondsRevenue bonds and loans
City of Garden City’s Outstanding DebtGeneral Obligation and Revenue Bonds/Loans
2010 2009Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities Total$ 9,823,000 $ 15,277,000 $ 25,100,000 $ 10,028,700 $ $ 10,028,700
12,927,595 12,927,595
$ 9,823,000 $ 15,277,000 $ 25,100,000 $ 10,028,700 $ 12,927,595 $ 22,956,295Total
11
The City’s total bonded debt increased by $2,143,705 (9.3%) during the current fiscal year. The keyfactor in this increase was issuance of $3,382,000 of general obligation bonds for internal improvementsin the utility funds during 2010.
For the past 10 years, the City has received a credit rating of A2 from Moody’s Investors Service.
State statutes limit the amount of general obligation debt the City may issue to 30% of its total assessedvaluation. The current debt limitation for the City of Garden City is $44,855,767, which is significantly inexcess of the City’s outstanding general obligation debt.
Additional information about the City’s long-term debt can be found in Note 1, item D on page 39 andNote 3, item F on pages 54 through 56 of this report.
Economic Factors and Next Year’s Budget and Rates
¯ The unemployment rate for the City of Garden City is currently 4.2%, which is up from 3.7% a yearago. Even though the rate increased, it compares favorably to the State’s average unemploymentrate of 6.4% and the national average rate of 9.4%.
¯ The occupancy rate of the City’s central business district is at 89%, which remains unchanged fromone year ago.
¯ Inflationary trends in the region compare favorably to national indices.
All of these factors were considered in preparing the City of Garden City’s budget for the 2010 fiscal year.
During the current fiscal year, the unreserved, undesignated fund balance in the general fund decreased$9,053, to $3,310,971. The City has appropriated $2,981,925 of the unreserved, undesignated fundbalance for spending in the 2011 fiscal year budget. It is intended that this use of available fund balancewill avoid the need to raise taxes or charges during the 2011 fiscal year. It also is intended to obviate theneed for the transfer of additional resources to the general fund from the utility operations.
Requests for Information
This financial report is designed to provide a general overview of the City of Garden City’s finances for allthose with an interest in the City’s finances. Questions concerning any of the information provided in thisreport or requests for additional financial information should be addressed to the Director of Finance, 301North 8th, PO Box 998, Garden City, KS 67846.
12
Basic Financial Statements
13
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CITY OF GARDEN CITY, KANSASStatement of Net Assets
December 31, 2010
Assets
Pdma~ Government Component UnitsGarden City Garden City
Govemmental Business-Type Recreation HousingActivities Activities Total Commission Authority
Cash $ 8,563,152Investments 1,673,077Restricted assets:
CashInvestments
Receivables (net of allowances for uncollectibles):Taxes 7,132,248Accounts and interest 321,983Other 22,932
Internal balances (250,000)Prepaid expensesInventoryDeferred bond costs 67,183Restricted assets:
CashDeferred bond costs
Capital assets (net of accumulated depreciation):Land 1,183,776Property, plant and equipment 39,894,085Construction in progress 328,639
Liabilities
Totalassets
$ 7,751,790 $ 16,314,942 $ 616,123 $ 134,915300,000 1,973,077 174,400
153,294 153,294100,000 100,000
389,860 7,522,1081,489,851 1,811,834 4,355
22,932250,000
11,956 41,0722,333,511 2,333,511 8,723
67,183
1,295,313 1,295,313184,068 184,068
361,870 1,545,646 426,14468,622,787 108,516,872 440,927 1,615,3!3
328~639 212,333
$ 58,937,075 $ 83,232,344 $ 142~169~419 $ 1,069,006 $ 2,617,255
Accounts payable and accrued liabilities $ 814,513 $ 1,604,693 $ 2,419,206 $ 28,639 $ 29,701Unearned revenue 5,326,858 389,860 5,716,718 5,097Accrued interest 115,403 49,131 164,534Current portion of long-term liabilities 2,437,531 1,469,860 3,907,391 43,785 1,772Payable from restricted assets:
Customer deposits and refunds 248,034 248,034 21,263Noncurrent liabilities:
Long-term liabilites due in more than one year 9,536,794 14,111,866 23,648,660 75,885 15,948
Totalliabilities $ 18,231,099 $ 17,873,444 $ 36,1__04,543 $ 148,309 $~73,78"i
Net Assets
Invested in capital assets, net of related debt $ 31,975,036 $ 53,353,800 $ 85,328,836 $ 357,063 $ 2,253,790Restricted for:
Debt se~ice 189,267 1,484,641 1,673,908Other purposes 21,067
Unrestricted 8,541,673 10,520,459 19~062~132 542,567 289,684
Total net assets $ 40,705,976 $ 65,358,900 $ 106,064 876 $ 920,697 $ 2,543,474
The accompanying Notes to the Financial Statements are an integral part of this statement.15
CITY OF GARDEN CITY, KANSASStatement of Activities
For the Year Ended December 31, 2010
Program Revenues
Operating CapitalCharges for Grants and Grants and
Expenses Services Contributions ContributionsFunctions/ProgramsPdmary govemment:
Governmental activities:General government $ 4,698,266 $ 449,462 $ 517,374 $ 812,029Public safety 10,520,505 1,594,491 158,108Public works 3,997,877 910,936 25,000Parks and recreation 2,766,802 16,734 71,257Interest on long-term debt 400,611
Total governmental activities 22,384,061 2,060,687 1,657,675 837,029
Bosiness-type activities:Electric 21,157,506 23,072,844Water and sewer 5.666,156 7,092,827Airport 1,107,934 286,326Solid waste 2,364,421 2,733,879Golf course 763,293 448,690Drainage 98,028 205276
1,629,530
Total business-type activities 31,157,338 33,839,842 1,629,530
Total pdmary government $ 53,541,399._~_ $ 35,900,529 $ 3,287,205 $ 837,029
Component units:Garden City Recreation CommissionGarden City Housing Authority
Total component units
$ 1.778,421 $ 373,301 $ 171,234 $7031854 2611069 2801017 931758
$ 2,4821275 $ 634,370 $ 4511251 $ 93,758
General revenues:Taxes:
Property taxes levied for general purposesProperty taxes levied for debt serviceProperty taxes levied for contributed capital purposesSales taxesFranchise taxesOther taxes
Investment earningsMiscellaneousGain on disposal of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning of year
Net assets, end of year
The accompanying Notes to the Financial Statements are an integral part of this statement.16
Activities
Net (Expense) Revenue and Changes in Net AssetsPrimary Government Component Units
Garden City Garden CityBusiness-type Recreation Housing
Activities Total Commission Authority
$ (2,919,401)(8,767,906)(3,061,941)(2,678,811)
(400,611)
(17,828,670)
$ (2,919,401)(8,767,906)(3,061,941)(2,678,811)
(400,61!)
(17,828,670)
$ $
1,915,338 1,915,3381,426,671 1,426,671
807,922 807,922369,458 369,458
(314,603) (314,603)107,248 107,248
4,312,034 4,312~034
(17,828,670) 4,312,034 /13,516,636)
(1,233,886)(89,010)
(1,233,886) (69,010)
3,822,5971,370,619
8,505,990707,656761,578301,284174,980
1,678,500
471,787
5,929471,116
1,268(1,678,500)
3,822,597 1,169,0371,370,619
471,7878,505,990
707,656761,578 4,000307,213 13,308646,096 6,872
1,268
2,985
1713231204 (7281400) 161594~804 11193,217 21985
(505,466) 3,583,634 3,078,168 (40,669) (66,025)
41,211,442 61 ~775,266 102,986,’/08 961,366 2,609,499
~$40,705,97~6 $ 65,358,900 $1~06,064,876 $ 920,69~7 $ 2 543 474
17
CITY OF GARDEN CITY, KANSASBalance Sheet
Governmental FundsDecember 31, 2010
Assets
CashInvestmentsReceivables (net of allowances
for uncollectibles):TaxesSpecial assessmentsAccounts and interestOther
Interfund receivable
Total assets
DebtGeneral Service
$ 3,572,858 $ 189,267
OtherGovernmental
Funds
$ 3,686,9191,548,077
4,921,920 1,278,940 931,3881,491,917
321,98322,932
3,980
$ 8,820,741 $ 2,960,124 $ 6,189,316
TotalGovernmental
Funds
$ 7,449,0441,548,077
7,132,2481,491,917
321,98322,932
3,980
$ 17,970,181
Liabilities and Fund Balances
Liabilities:Accounts payable and accrued liabilitiesInterfund payableDeferred revenueTemporary notes payable
Total liabilities
Fund balances:Reserved for debt serviceUnreserved, reported in:
General fundSpecial revenue fundsCapital project funds
$ 408,032 $
3,312,289 2,770,857
$ 211,5993,980
735,629250,0OO
$ 619,6313,980
6,818,775250,000
3,720,321 2,770,857 1,201,208 7,692,386
189,267 189,267
5,100,4204,198,268
789~840
5,100,4204,198,268
789,840
Total fund balances 5~100,420 189~267 4~988,108 10~277,795
Total liabilities and fund balances $ 8,820,741 $ 2,960,124 $ 6,189,316 $ 17,970,181
The accompanying Notes to the Financial Statements are an integral part of this statement.18
CITY OF GARDEN CITY, KANSASReconciliation of the Balance Sheet to the
Statement of Net Assets - Governmental FundsDecember 31,2010
Amounts reported for governmental activities in the statement of net assets differ from the fund balances ofgovernmental funds on the preceding balance sheet as shown in the following reconciliation:
Fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net assetsare different because:
Capital assets used in governmental activities are not financial resourcesand therefore are not reported in the governmental funds.
Other long-term assets are not available to pay for current-period expendituresand therefore are deferred in the funds.
Long-term liabilities, including bonds payables, are not due and payable inthe current period and therefore are not reported in the governmental funds.
Governmental bonds payableCapital leases payableAccrued interest payable on long-term debtCompensated absences
(9,823,000)(744,533)(115,403)(956,598)
Internal service funds are used by management to charge the costs ofcertain activities, such as health insurance and workers compensation,to individual funds. The assets and liabilities of the internal service fundshave not been included in the balance sheet.
Net assets of governmental activities
10,277,795
41,406,500
67,183
(11,639,534)
594~032
4O,7O5,976
The accompanying Notes to the Financial Statements are an integral part of this statement.19
CITY OF GARDEN CITY, KANSASStatement of Revenues, Expenditures and Changes in Fund Balances
Governmental FundsFor the Year Ended December 31, 2010
Revenues:TaxesSpecial assessment taxesIntergovernmental revenueFranchisesLicenses and permitsUse of money and propertyMiscellaneousDonationsCemeteryPolice and municipal courtFireInspectionPlanning and zoningParks and zoo
Total revenues
Expenditures:Current:
General governmentPublic safetyPublic worksParks and recreation
Capital outlay and capital projectsDebt service:
PrincipalInterest and fiscal chargesBond issuance costs
Total expenditures
Revenues underexpenditures
OtherDebt Governmental
General Service Funds
12,244,326
191,931707,656339,459221,278
1,566352,270102,460
1,262,325195,861136,305
4,24316,734
$ 1,370,619 $ 845,839348,077
25,000 1,465,744
874 77,938173,414111,682
3,300
TotalGovernmental
Funds
$ 14,460,784348,077
1,682,675707,656339,459300,090174,980463,952105,760
1,262,325195,861136,305
4,24316,734
15,776 414 1,744~570 2,677,917 20,198,901
3,454,811 381,260 3,836,07110,150,577 66,691 10,217,2681,141,802 610,779 1,752,5812,239,715 881,308 3,121,023
3,014,771 3,014,771
4,341
4,959,150
1,623,700359,944
16~986,905 1~983,644
1,623,700359,944
4,341
23,929,699
(1,210,491) (239,074) (2,281,233) (3,730,798)
Other financing sources (uses):Transfers in 1,648,500 635,595Transfers out (375,595) (475,000)Bonds issued 215,000 1,203,000Issuance of capital leases 107,450
2,284,095(850,595)
1,418,000107~450
Total other financingsources (uses)
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
1,380,355 215,000 1,363,595 2,958~950
169,864 (24,074) (917,638) (771,848)
4,930,556 213,341 5,905,746 11,049,643
5,1001420 $ 189,267 $ 4,988110~8 $ 10,277,795
The accompanying Notes to the Financial Statements are an integral part of this statement.20
CITY OF GARDEN CITY, KANSASReconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Fundsto the Statement of Activities
For the Year Ended December 31, 2010
Amounts reported for governmental activities in the statement of revenues, expenditures and changes in fundbalances of governmental funds differ from the amounts reported in the government-wide statement of activitiesas shown in the following reconciliation:
Net change in fund balances - total governmental funds $ (771,848)
Amounts reported for governmental activities in the statement of activities aredifferent because:
Governmental funds report capital outlays as expenditures. However, in thestatement of activites the cost of those assets is allocated over theirestimated useful lives and reported as depreciation expense. This is theamount by which depreciation exceeded capital outlay in the current period:
Expenditures for capital assetsLess current year depreciationLess current year disposals (net of depreciation)
$ 3,139,669(2,055,692)
(373,502) 710,475
Some expenses reported in the statement of activities do not require the useof current financial resources and therefore are not reported as expendituresin governmental funds:
Accruedinterestexpense onlong-term debt, netchangeChange in compensated absences
(34,616)(168,287) (202,9O3)
Bond proceeds provide current financial resources to governmental funds,but issuing debt increases long-term liabilities in the statement of netassets. Repayment of bond principal is an expenditure in the governmentalfunds, but the repayment reduces long-term liabilities in the statement of netassets. Also, governmental funds report the effect of issuance costs whendebt is first issued, whereas these amounts are deferred and amortized inthe statement of activities. This amount is the effect of these differencesin the treatment of long-term debt and related items:
Bonds issuedBond issuance costs, net of amortizationPrincipal payments
(1,418,000)(1,710)
1,623,700 203,990
Capital leases provide current financial resources to governmental funds,but issuing debt increases long-term liabilities in the statement of netassets. Repayment of capital leases is an expenditure in the governmentalfunds, but the repayment reduces long-term liabilities in the statement of netassets. This is the amount by which payments exceed proceeds:
Capital leases issuedPrincipal payments
(107,450)302,607 195,157
Internal service funds are used by management to charge the costs ofcertain activities, such as health insurance and workers compensation,to individual funds. The net revenues (expenses) of the internal servicefunds are reported with governmental activities. (640,337)
Changes in net assets of governmental activities $ (505,466)
The accompanying Notes to the Financial Statements are an integral part of this statement.21
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22
CITY OF GARDEN CITY, KANSASStatement of Revenues, Expenditures and Changes in
Fund Balance - Budget and ActualGeneral Fund
For the Year Ended December 31, 2010
Revenues:Administration:
TaxesIntergovernmental revenueFranchisesLicenses and permitsUse of money and propertyReimbursementsMiscellaneous
Total administrationCemeteryPolice and municipal courtFireInspectionPlanning and zoningParks and zoo
Total revenues
Expenditures:Current:
General government:General administrationHuman resourcesCemeteryDevelopment servicesCapital improvementsEmployee benefits
Public safety:PoliceFireInspectionMunicipal court
Highways and streets:EngineeringStreet
Recreation:Parks and zoo
Total expenditures
Revenues over (under)expenditures
Other financing sources (uses):Transfers inTransfers outCapital lease proceeds
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
Budqeted AmountsOd£1inal Final
ActualAmountsBudgetary
Basis
$ 12,090,525 $ 12,090,525 $ 12,033,652145,000 145,000 191,931830,000 830,000 739,413238,084 238,084 339,459255,000 836,500 221,278581,50049,566 49,566 1,566
14,189,675 14,189,675 13,527,299109,250 109,250 102,460
1,255,400 1,255,400 1,262,325200,000 200,000 195,861150,500 150,500 136,305
4,24318,000 18,000 16,734
15,922,825 15,922,825 15,245,227
Variance withFinal Budqet
$ (56,873)46,931
(90,587)101,375
(615,222)
(48,000)(662,376)
(6,790)6,925(4,139)
(14,195)4,243(1,266)
(677,598)
1,515,820 1,515,820 845,903 669,917132,000 132,000 131,172 828516,000 516,000 440,774 75,226243,750 243,750 249,057 (5,307)
3,220,500 3,220,500 1,246,635 1,973,865189,000 189,000 189,000
6,649,700 6,649,700 6,248,351 401,3492,804,650 2,804,650 2,669,139 135,511
294,650 294,650 243,588 51,0621,023,380 1,023,380 989,499 33,881
264,000 264,000 214,691 49,3091,033,500 1,033,500 927,111 106,389
2,510,350 2,510,350 2,239,715 270,635
20,397,300 20,397,300 16,634,635 3,762,665
(4,474,475) (4,474,475) (1,389,408) 3,085,067
1,498,500 1,498,500 1,648,500(275,000) (275,000) (375,595)
107~450
(3,250,975) (3,250,975) (9,053)
3,250,975 3~250,975 3,320,024
$ $ $ 3,3107971
150,000(100,595)107,450
3,241,922
69,049
$ 3,310,971
The accompanying Notes to the Financial Statements are an integral part of this statement.23
CITY OF GARDEN CITY, KANSASBalance Sheet
Proprietary FundsDecember 31, 2010
Assets
WaterElectric Electdc and SewerUtility Utility Utility
Current Year Pdor Year Current Year
Current assets:Cash $ 4,828,608Investments, at fair valueTemporary notes receivable 250,000Restricted assets:
Cash 148,034Investments 100,000
Taxes receivableAccounts receivable 996,884Inventory 2,035,542
Total current assets 8,359,068
Noncurrent assets:Restricted assets:
CashDeferred bond costs 19~083
Total restricted assets 19,083
Capital assets:Land 103.041Production. storage and distribution
equipment 27,529,772Less accumulated depreciation (10,035.990)
Golf course, club house and equipmentLess accumulated depreciation
Vehicles and equipment 970,448Less accumulated depreciation (808.045)
ContainersLess accumulated depreciation
Airport improvementLess accumulated depreciation
Total capital assets
Total noncurrent assets
Liabilities
Total assets
Business-type Activities - EnterpriseWater
and SewerUtility Airport Airport
Pdor Year Current Year Pdor Year
4,901,323 $ 1.120.011 $ 521,469 $ 521,655 $ 509.388
195,54450,000
901,495 303.723 261,3622,102~231 297~969 213~006
8,150,593 1 ~721 ~703 995,837
1,295,313164,985
1,460,298
1.215,998
1,215,998
103,041 120,329 120,329
24.797,218 45.876,424 43.883,431(9.507,028) (17,877.680) (16,976.397)
389.860 399.58613.597 6.820
925,112 915,794
971,054 1,029,024 1,022,116 1,147.512 1,130,265(785,606) (921,814) (855,373) (237,383) (209,891)
17,759,226 15,578,679 28,226,283
17~7781309 1515781679 2916861581
$ 26~1371377 $ 2317291272 $ 3114081284
Current liabilities:Accounts payable and accrued liabilities $ 1,272,461 $ 1,285,110 $ 203,662Unearned revenueAccrued interest 6.909 42,222Current portion of revenue bonds payable 124,500 1,345,360Payable from restricted assets:
Customer deposits 248~034 245,544Total current liabilities 1,651,904 1 ~530~654
Noncurrent liabilities:Net OPEB obligationRevenue bonds payable
Total noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets, net of related debtRestricted for debt serviceRestricted for health insuranceRestricted for workers compensationUnrestricted
Total net assets
Total liabilities and net assets
26,372,411 24,657,115(7,055,807) (6,633,085)
27,194~106 20.226,733 18,944,404
2814101104 2012261733 1819441404
$ 29~405~941 $ 21,151~845 $ 19,860~198
$ 167,465 $ 39.425 $ 29.350389,860 399.586
173.0741.013.639
1 ~591~244 1~354~178 429~285 428~936
1 ~530,500 12,581,366 11 ~913~956
1 ~530,500 12~581 ~366 11 ~913,956
3,182~404 1~530~654 14~172~610 13~268~134 429,285 428,936
16,097.317 15,578,679 14,257,335 14.266.51119,083 1,460.298 1.215,998
20,226,733 18,944.404
6,838,573 6.619,939 1,518,041 655,298 495,827
22,954,973 22,198~618 17,235,674 16,137,807 20,722,560
$ 26,137,377 $ 23,729,27~2 $ 3’1,408,284 $ 29,405,941 $ 21,151,845
486,858
19,431~262
$ 19,860,198
The accompanying Notes to the Financial Statements are an integral part of this statement.24
GovernmentalFunds Activities
Other OtherEnterprise Enterprise Internal
Funds Funds Totals Totals ServiceCurrent Year Prior Year Current Year Pdor Year Funds
$ 1,281,516 $ 1.141,390 $ 7,751.790 $ 7,073,570 $ 1,114,108300,000 300,000 300.000 300,000 125,000
250,000
5,260 18,112 153.294 213,656100,000 50.000389,860 399,586
175,647 137.208 1,489.851 1.306.8852,333~511 2,315,237
1,762,423 1,596,710 12,768,306 11~658,934 1,239,108
1,295,313 1.215,998184,068
1,479,381 1,215,998
138,500 138,500 361,870 361,870
337,232 157.933 73.743,428 68.838,582(8,520) (1.645) (27.922,190) (26,485,070)
1.675,157 1,675.157 1,675,157 1,675.157(944.592) (910,770) (944,592) (910,770)
1.720,859 1.550,468 4,867,843 4,673,903(1,191,664) (1.131.519) (3,158,906) (2.982,389)3,175,803 3,042,503 3.175,803 3,042,503
(2,130,360) (2.083.156) (2,130,360) (2,083,156)26.372.411 24.657,115(7,055,807) (6,633,085)
2,772,415 2~437,471 68,984,657 64,154,660
2,772,415 2,437,471 70,464,038 65,370,658
$ 4,534,838 $ 4,034,18~1 $ 83,232,344 $ 77,029,592 $ 1~239,108
89,145 $ 26,602 $ 1,604.693 $ 1.508,527 $ 194,882389,860 399,58649.131 173,074
1,469,860 1,013,639
248~034 245~54489~145 26,602 3~761,578 3~340~370 194~882
450.19414~111 ~866 11~913~956
14~111 ~866 11 ~913~956 450~10~4
17.873,444 15,254.326 645,07689,145 26~602
2,772,415 2,437.471 53,353.800 51,227.0655,260 18,112 1.484,641 1.234.110
1,668~018 1~551,996 10~520,459 9,314,091
224.353369.679
4,445,693 4.007,579 65,358~900 61,775,266 594~032
$ 4,534,838 $ 4 034181 $ 83.232,344 $ 77 029 592 $ 1 239 108
25
CITY OF GARDEN CITY, KANSASStatement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary FundsFor the Year Ended December 31, 2010
Operating revenues:Charges for servicesReimbursementsRents and utilitiesMiscellaneousMembership and feesConcessions
Water WaterElectdc Electdc and Sewer and SewerUtility Utility Utility Utility
Current Year Prior Year Current Year Prior Year
Business-type Activities - Enterprise
Airport AirportCurrent Year Prior Year
$ 23,072,844 $ 21,424,209 $ 7,092,827 $ 6,266,262 $
4,664 1,619 2,096 19,993286,326 326,444
1,039 291
Total operating revenues 23~077~508 21,425,828 7~094,923 6,286,255 287~365 326~735
Operating expenses:Personnel servicesContractual servicesCommoditiesDepreciationProduction expenseDistribution expenseCommercial and general expenseSundry expenses
23,857 24,946573,769 565,198 992,532 983,133
17,698,105 15,444,101 3,135,225 3,084,7771,239,878 1,083,505 463.569 435,801
761,519 768,902 489,406 467,3248521201 9051248 1301913 1141186
252,457 275,245244,067 162,843161,196 424,730450,214 442,764
Total operating expenses 21,149,329 18,791,900 5,211,645 5,085,221 1,107,934 1,305,582
Operating income (loss) 1,928,179 2,633,928 1,883,278 1,201,034 (820,569) (978,847)
Nonoperating revenues (expenses):Intergovernmental revenueInterest incomeRent and royaltiesSale of materialsInterest expenseLoss on disposal of assets
Total nonoperatingrevenues (expenses)
68
321,285(6,909)(1,268)
790 4,474
48,919 34,310 48,126(447,975) (475,650)
(6,130) (6,536) (27,176)
42,789 (419,41~) (450,226)
2,676,717 1,463,867 750,808
313,176
2,241,355
1,629,530 3,432,840193
10,550 7,068
Income (loss) beforeoperating transfers
1,640,080 3,440,101
819,511 2,461.254
Capital contributions 471,787 419,206Transfers in 267,100Transfers out (! ,485,000) (2,192,000) (366,000) (295,500)
Change in net assets 756,355 484,717 1,097,867 455,308 1,291,296 3,147,560
Total net assets, beginning of year 22,198,618 21,713,901 16,137,807 15,682,499 19,431,262 16,283,702
Total net assets, end of year $ 22,954,973 $ 22,198,618 $ 17,235,674 $ 16~137~807 $ 20,722,560.~. $ 19,431,262
The accompanying Notes to the Financial Statements are an integral part of this statement.26
GovernmentalFunds Activities
Other OtherEnterprise Enterprise Internal
Funds Funds Totals Totals ServiceCurrent Year Pdor Year Current Year Prior Year Funds
$ 2,939,155 $ 2,321,298 $ 33,104,826 $ 30,011,769
286,326 326,4448,162 3,501 15,961 25,404
383,846 367,575 383,846 367,57564844 69,491 64,844 69,491
$2,284,530
3,396,007 2,761,865 33,855,803 30,800,683 2,284,530
1,481,896 1,411,182 1,734,353 1,686,4271,077,658 949,443 1,321,725 1,112,286
384,977 372,287 570,030 821,963265,792 261,882 2,282,307 2,252,977
20,833,330 18,528,8781,703,447 1,519,3061,250,925 1,236,226
983,114 1,019,434
3,171,061
3,210,323 2,994,794 30,679,231 28,177,497 3,171,061
185,684 (232,929) 3,176,572 2,623,186 (886,531)
1,629,530 3,432,8405,071 9,267 5,929 13,9344,500 11,100 15,050 18,168
84,510 56,989 440,105 154,034(454,884) (475,650)
(14,151) (17,330) (21,955) (50,636)
1,194
79 930 601026 116131775 3,0921690 1~194
265,614 (172,903) 4,790,347 5,715,876 (885,337)
471,787 419,206325,000 250,000 325,000 517,100 245,000
(152,500) (60,000) (2,803,500) (2,547,500)
438,114 17,097 3,583,634 4,104,682 (640,337)
4,007,579 3,990,482 61,775,266 57,670~584 1,234,369
$ 414451693 $ 4,0071579 $ 651358,900 $ 61775 266 $ 594032
27
I1 I [1[ [I I III ii r rl r i ii Ii ~11 J ii i i 1 iii111["
CITY OF GARDEN CITY, KANSASStatement of Cash Flows
Proprietary FundsFor the Year Ended December 31,2010
Cash flows from operating activities:Receipts from customersOther receiptsPayments to suppliersPayments for personnel servicesClaims paid
Water WaterElectric Electric and Sewer and Sewer
Utility Utility Utility UtilityCurrent Year Pdor Year Current Year Prior Year
Business-type Activities - Enterprise
Airport AirportCurrent Year Prior Year
$ 22,977,455 $ 21,350,769 $ 7,050,466 $ 6,222,365 $ 279,549 $ 340,7744,664 1,619 2,096 19,993 1,039 291
(18,978,654) (16,930,353) (2,829,404) (2,782,791) (395,188) (627,348)(1,542,866) (1,468,168) ( 1,438,475) ( 1,399,001 ) (252,457) (275,245)
Net cash provided (used)by operating activities 2,460,599 2,953,867 2,784,683 2,060,566 (367,057) (561,528)
Cash flows from noncapital financing activities:Customer deposits 2,490 1,781Subsidy from federal grants 1,629,530 3,432,840Transfers in 267,100Transfers out (1,485,000) (2,192,000) (366,000) (295,500)
Net cash provided (used) bynoncapital financing activities (1,482,510) (2,190,219) (366,000) (295,500) 1,629,530 3,699,940
Cash flows from capital and related financingactivities:Receipts from sale of materials 321,285Purchases of capital assets (2,755,584)Capital contributionsProceeds from issuance of long-term debt 1,655,000Premium from issuance of long-term debtPayment of long-term debtInterest paid on long-term debtBond issuance costs (19,083)
Net cash provided (used) by capitaland related financing activities
Cash flows from investing activities:Interest incomeProceeds from sale of investmentsPurchase of investmentsRents and royalties
Net cash provided (used) byinvesting activities
Net increase (decrease) in cash
Cash, beginning of year
Cash, end of year
Balance sheet classification:Current assetsRestricted assets
Total cash, end of year
$
$
$
48,919 34,310 48,126(646,559) (2,031,245) (379,048)
13,622,000304,726
(12,927,595) (978,574)(578,827) (488,572)(164,985)
(1,732,543) (3,363,067)471,787 419,206
(798,382) (597,640) (1,741,616) (1,798,068) (1,260,756) (2,943,861)
68 790 4,474 193100,000 150,000 945,000 90,000
(400,000) (100,000)10,550 7,068
(299,932) 50~000 790 949 474 10,550 97,261
(120,225) 216,008 677,857 916,472 12,267 291,812
5,096~867 4,880,859 1,737,467 820 995 509,388 217,576
4,976,642 $ 5,096,867 $ 2,415,324 $ 1,737,46"7 $ 521,655 $~509,388
4,828,608 $ 4,901,323 $ 1,120,011 $ 521,469 $ 521,655 $ 509,388148~034 195~544 1~295~313 1~215~998
41976,642 $ 510961867 $ 2,4151324 $ 11737,467 $ 521 655 $ 5091388
Reconcilation of operating income (loss) tonet cash provided (used) by operatingactivities:Operating income (loss) $ 1,928,179 $ 2,633,928Adjustments to reconcile operating
income to net cash provided (used)by operating activities:
Depreciation 573,769 565,198Change in assets and liabilities:
(Increase) decrease inreceivables (95,389) (73,440)
(Increase) decrease ininventory 66,689 (255,379)
Increase (decrease) inaccounts payable (12,649) 83,560
Increase innet OPEB obligations
1,883,278 $ 1,201,034 $ (820,569) $ (978,647)
992,532 983,133 450,214 442,764
(42,361) (43,897) (6,777) 14,330
(64,963) 25,346
36,197 (105,050) 10,075 (39,775)
Net cash provided (used) byoperating activities $~ 2,460,599 $ 2,953,867 $ 2,764,68~3 $ 2,060,566 $ (367,057) $ (561,528)
The accompanying Notes to the Financial Statements are an integral part of this statement.28
GovernmentalFunds Activities
Other OtherEnterprise Enterprise Internal
Funds Funds Totals Totals ServiceCurrent Year Prior Year Current Year Prior Year Funds
$ 3,349,406 $ 2,745,865 $ 33,656,876 $ 30,659,773 $8,162 3,501 15,961 25,404 2,284,530
(1,400,092) (1,443,768) (23,603,338) (21,7EH,260)( 1,481,896) ( 1,411,182) (4,715,694) (4,553,596)
(2,957,385)
475,580 (105,584) 5,353,805 4,347,321 (672,855)
2,490 1,7811,629,530 3,432,840
325,000 250,000 325,000 517,100 245,000(152,500) (60,000) (2,003,500) (2,547,500)
!72,500 190,000 (46,480) 1,404,221 245,000
84,510 56,989(614,887) (429,812)
440,105 154,034(7,134,259) (4,818,486)
471,787 419,20615,277,000
304,726(12,927,595) (978,574)
(578,827) (488,572)(184,068)
(530,377) (372,823) (4,331,131) (5,712,392)
5,071 9,267 5,929 13,934300,000 550,000 400,000 1,735,000
(300,000) (300,000) (700,000) (400,000)4,500 11,100 15,050 18 168
1,194
91571 270~367 (279,021) 1,3671102 1i!94
127,274 (18,040) 697,173 1,406,252 (426,661 )
1 , 1591502 1,1771542 815031224 7,096,972 1,5401"~9
$ 1,2.861776 $ 111591502 $ 9200397 $ 81503,224 $ 1,1141108
$ 1,281,516 $ 1,141,390 $ 7,751,790 $ 7,073,570 $ 1,114,1085,260 18,112 1,448,607 1,429~654
$ !,286,776 $ 1 159502 $ 9,200,397 $ 8~503,224 $ 1~114,108
$ 185,684 $ (232,929) $ 3,176,572 $ 2,623,186 $ (886,531)
265,792 261,882 2,282,307 2,252,977
(38,439) (12,499) (182,966) (115,506)
(18,274) (230,033)
62,543 (122,038) 96,166 (183,303) (11,421)
225,097
$ 475 580 $ (105,584) $ 5 353 805 $ 4,347,321 $ (672,855)
29
CITY OF GARDEN CITY, KANSASStatement of Fiduciary Net Assets
Fiduciary FundsDecember 31,2010
Assets
Cash
Total assets
AgencyAccounts
$ 131,282
$ 131,282
$ 131,282
$ 131,282
Liabilities
Accounts payable
Total liabilities
The accompanying Notes to the Financial Statements are an integral part of this statement.3O
Notes to the
Financial Statements
31
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
Summary of Si.qnificant Accountinq PoliciesThe City of Garden City, Kansas (the City) was incorporated under the provisions of the State ofKansas. The City operates under a Commission-Manager form of government and provides thefollowing services as authorized by its charter: public safety (police and fire), streets, sanitation,health and social services, culture-recreation, public improvements, planning and zoning, andgeneral administrative services. Other services include utilities and airport operations.
The financial statements of the City have been prepared in conformity with accounting principlesgenerally accepted in the United States of America as applied to government units. TheGovernmental Accounting Standards Board (GASB) is the accepted standard-setting body forestablishing governmental accounting and financial reporting principles. The more significant of theCity’s accounting policies are described below.
Financial Reportin.q EntityThe City is a municipal corporation governed by an elected four-member commission and amayor. The accompanying financial statements present the City (the primary government) andits component units, entities for which the City is considered to be financially accountable. Eachdiscretely presented component unit is reported in a separate column in the government-widefinancial statements (see note below for description) to emphasize that it is legally separate fromthe City.
The governing bodies of these discretely presented component units are appointed by the CityCommission. Each discretely presented component unit has a December 31st year end.
The Garden City Recreation Commission operates the City’s recreational programs.The Recreation Commission is a separate, legal municipality that now prepares andpublishes its own budget. The taxes budgeted by the Recreation Commission areappropriated by the City and are required to be distributed to the RecreationCommission. The Board of Directors is responsible for the management and fiscalaccountability of the Recreation Commission. The Recreation Commission is presentedas a governmental fund type.
The Garden City Housing Authority operates the City’s housing projects. It has its ownBoard of Directors, who operates independently from the City. The Board of Directors isresponsible for the management and fiscal accountability of the Housing Authority. TheBoard is appointed by the City Commission, who also has the authority to removeappointed Board members. The Housing Authority is presented as an enterprise fundtype.
Complete financial statements of the individual component units can be obtained from the CityClerk’s office at the City Administrative Building or from their respective administrative offices.
Garden City Recreation Commission310 North 6thGarden City, KS 67846
Garden City Housing Authority606 PershingGarden City, KS 67846
32
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
1. Summary of Significant Accountin.q Policies (continued)
Government-wide and Fund Financial StatementsThe government-wide financial statements (i.e., the statement of net assets and the statementof activities) report information on all of the nonfiduciary activities of the primary government andits component units. Governmental activities, which normally are supported by taxes andintergovernmental revenues, are reported separately from business-type activities, which rely toa significant extent on fees and charges for support. Likewise, the primary government isreported separately from certain legally separate component units for which the primarygovernment is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a givenfunction or segment are offset by program revenues. Direct expenses are those that are clearlyidentifiable with a specific function or segment. Program revenues include 1) charges tocustomers or applicants who purchase, use, or directly benefit from goods, services, orprivileges provided by a given function or segment and 2) grants and contributions that arerestricted to meeting the operational or capital requirements of a particular function or segment.Taxes and other items not properly included among program revenues are reported instead asgeneral revenues.
Separate financial statements are provided for governmental funds, proprietary funds, andfiduciary funds, even though the latter are excluded from the government-wide financialstatements. Major individual governmental funds and major individual enterprise funds arereported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accountin,q and Financial Statement PresentationThe government-wide financial statements are reported using the economic resourcesmeasurement focus and the accrual basis of accounting, as are the proprietary funds andfiduciary fund financial statements. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of related cash flows. Propertytaxes are recognized as revenues in the year for which they are levied. Grants and similar itemsare recognized as revenue as soon as all eligibility requirements imposed by the provider havebeen met.
Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized assoon as they are both measurable and available. Revenues are considered available when theyare collectible within the current period or soon enough thereafter to pay liabilities of the currentperiod. For this purpose, the City considers revenues to be available if they are collected within60 days of the end of the current fiscal period. Expenditures generally are recorded when aliability is incurred, as under accrual accounting. However, debt service expenditures, as well asexpenditures related to compensated absences and claims and judgments, are recorded onlywhen payment is due.
Franchise taxes, licenses and interest associated with the current fiscal period are allconsidered to be susceptible to accrual and so have been recognized as revenues of the currentfiscal period. Property taxes and special assessments are not available as explained in Note 1,item D and result in unearned revenue. All other revenue items and taxes are consideredmeasurable and available only when cash is received by the City.
33
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
1. Summary of Si,qnificant Accountin.q Policies (continued)
C. Measurement Focus, Basis of Accountin,q and Financial Statement Presentation (continued)The City of Garden City reports the following major governmental funds:
General Fund - the General Fund is the City’s primary operating fund. It accountsfor all financial transactions of the general government, except those required to beaccounted for in another fund.
Debt Service Fund - the Debt Service Fund accounts for the resources accumulatedand payments made for principal and interest on long-term general obligation debtof governmental funds.
The City reports the following nonmajor governmental funds:
Special Revenue Funds - the special revenue funds account for revenue sourcesthat are legally restricted to expenditures for specific purposes (not including majorcapital projects).
Capital Project Funds - the capital project funds account for the acquisition of fixedassets or construction of major capital projects not being financed by proprietaryfunds.
The City reports the following major proprietary funds:
Electric Utility - this fund is used to account for the activities of the City’s electricutility department while operating the City owned generating and distribution system.
Water and Sewer Utility - this fund is used to account for the activities of the City’soperations of the City owned waterworks distribution system, sanitary sewer andwastewater treatment operations. Additional funds maintained within the water andsewer utility department include Water and Sewage Maintenance Reserve, andWater and Sewage Surplus. Funds are also maintained within the water and sewerutility department to account for capital projects funded through the KWPCRLF loanfund.
Airport - this fund is used to account for the operations of the Garden City RegionalAirport. This department includes the Airport Improvement Fund which is used toaccount for the federal grants and required City matching shares for the ongoingairport improvement projects.
Additionally, the City reports the following nonmajor proprietary and other fund types:
Nonmajor Enterprise Funds - nonmajor enterprise funds are used to account forthose operations that are financed and operated in a manner similar to privatebusiness or where the City has decided that the determination of revenues earned,costs incurred and/or net income is necessary for management accountability.
Internal Service Funds - internal service funds account for health insurance andworkers compensation benefits provided to other departments or agencies of theCity, or to other governmental units, on a cost-reimbursement basis.
34
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
1. Summary of Significant Accountinq Policies (continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)
Fiduciary Funds - agency accounts are used to account for assets held by the Cityas an agent on behalf of others. Agency accounts are custodial in nature and donot present results of operation or have a measurement focus. The agencyaccounts used by the City include:
¯ Payroll clearing account used to account for employee earnings and relatedbenefits after distribution from the corresponding City departments.
¯ Bail bonds account used to account for monies held as bail bonds by the policedepartment.
¯ Special investigations account used to account for monies received by thepolice department all of which are to be expended for drug control and specialinvestigation type expenditures.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,generally are followed in both the government-wide and proprietary fund financial statements tothe extent that those standards do not conflict with or contradict guidance of the GovernmentalAccounting Standards Board. Governments also have the option of following subsequentprivate-sector guidance for their business-type activities and enterprise funds, subject to thissame limitation. The City of Garden City has elected not to follow subsequent private-sectorguidance.
As a general rule, the effect of interfund activity has been eliminated from the government-widefinancial statements. Exceptions to this general rule are payments-in-lieu of taxes where theamounts are reasonably equivalent in value to the interfund services provided and other chargesbetween the City’s enterprise activities and various other functions of the City. Elimination ofthese charges would distort the direct costs and program revenues reported for the variousfunctions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants forgoods, services, or privileges provided, 2) operating grants and contributions, and 3) capitalgrants and contributions, including special assessments. Internally dedicated resources arereported as general revenues rather than as program revenues. Likewise, general revenuesinclude all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.Operating revenues and expenses generally result from providing services and producing anddelivering goods in connection with a proprietary fund’s principal ongoing operations. Theprincipal operating revenues of the enterprise funds and the City’s internal service funds arecharges to customers for sales and services. The City also recognizes as operating revenue theportion of connection fees intended to recover the cost of connecting new customers to thesystem. Operating expenses for enterprise funds and internal service funds include the cost ofsales and services, administrative expenses, and depreciation on capital assets. All revenuesand expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy touse restricted resources first, then unrestricted resources as they are needed.
35
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31,2010
1. Summary of Significant Accountinq Policies (continued)
D. Assets, Liabilities, and Net Assets or Equity
Deposits and InvestmentsCash resources of the individual funds are combined to form a pool of cash and investmentswhich is managed by the Finance Director. Cash includes amounts in demand deposits.Investments of the pooled accounts consist of certificates of deposit and money marketinvestments backed by U.S. government securities. Interest income earned is allocated amongfunds based on average monthly cash balances and in accordance with the adopted budget.
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, andshort-term investments with original maturities of three months or less from the date ofacquisition.
State statutes authorize the City to invest idle funds in U.S. government securities, temporarynotes, no-fund warrants, repurchase agreements and the Kansas Municipal Investment Pool.The Kansas Municipal Investment Pool operates in accordance with appropriate State laws andregulations. The reported value of the investment in the Kansas Municipal Investment Pool isthe same as the fair value of its pool shares. Other investments of the City and its componentunits are stated at fair value, which equals cost. The aggregate value of the investments,including certificates of deposit, at December 31, 2010, is $2,073,077.
Receivables and PayablesActivity between funds that are representative of lending/borrowing arrangements outstanding atthe end of the fiscal year are referred to as either "due to/from other funds" (i.e., the currentportion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion ofinterfund loans). All other outstanding balances between funds are reported as "due to/fromother funds". Any residual balances outstanding between the governmental activities andbusiness-type activities are reported in the government-wide financial statements as "internalbalances".
Advances between funds, as reported in the fund financial statements, are offset by a fundbalance reserve account in applicable governmental funds to indicate that they are not availablefor appropriation and are not expendable available financial resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles. Tradeaccounts receivable in excess of 90 days comprise the trade accounts receivable allowance foruncollectibles. The property tax receivable allowance is equal to 4.16% of outstanding propertytaxes at December 31, 2010.
In accordance with governing state statutes, property taxes levied during the current year are arevenue source to be used to finance the budget of the ensuing year. Taxes are assessed on acalendar year basis, are levied and become a lien on the property on November 1st of eachyear. The County Treasurer is the tax collection agent for all taxing entities within the County.Property owners have the option of paying one-half or the full amount of the taxes levied on orbefore December 20th during the year levied with the balance to be paid on or before May 10thof the ensuing year. State statutes prohibit the County Treasurer from distributing the taxescollected in the year levied prior to January 1st of the ensuing year. Consequently, for revenuerecognition purposes, taxes levied during the current year are not due and receivable until theensuing year. At December 31, 2010, such taxes are a lien on the property and are recorded astaxes receivable, net of anticipated delinquencies of $248,105, with a corresponding amountrecorded as unearned revenue on the balance sheets of the appropriate funds. Delinquenttaxes held by the County Treasurer at December 31, 2010, are not significant.
36
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
1. Summary of Si,qnificant Accountin.q Policies (continued)
D. Assets, Liabilities, and Net Assets or Equity (continued)
Receivables and Payables (continued)Kansas statutes require projects financed in part by special assessments to be financed throughthe issuance of general obligation bonds which are secured by the full faith and credit of the City.Special assessments received prior to or after the issuance of general obligation bonds arerecorded as revenue in the appropriate project fund. Further, state statutes require levyingadditional general ad valorem property taxes in the Debt Service Fund to finance delinquentspecial assessments receivable. Accordingly, special assessments receivable are accountedfor within the Debt Service Fund and no provision is made for potentially delinquent receivables.Special assessments are levied over a ten or fifteen year period and annual installments are dueand payable with annual ad valorem property taxes. The City may foreclose liens againstproperty benefited by special assessments when delinquent assessments are two years inarrears. At December 31, 2010, the special assessment taxes levied are a lien on the propertyand are recorded as special assessments receivable in the applicable fund with a correspondingamount recorded as unearned revenue.
Inventories and Prepaid ItemsAll inventories are valued at average cost using the first-in/first-out (FIFO) method. Inventoriesof governmental funds are recorded as expenditures when consumed rather than whenpurchased.
Certain payments to vendors reflect costs applicable to future accounting periods. The Citydeems prepaid expenses as immaterial to the financial statements. No capitalization oramortization has been recorded in the financial statements of the primary government. TheGarden City Recreation Commission and Garden City Housing Authority record certainpayments to vendors that reflect costs applicable to future accounting periods as prepaid itemsin their financial statements.
Restricted AssetsCertain resources set aside for the repayment of the City’s enterprise funds’ revenue bonds areclassified as restricted assets on the balance sheet because their use is limited by applicablebond covenants. The "maintenance reserve" account and "repair and replacement" account areused to report resources set aside to meet unexpected contingencies or to fund asset renewalsand replacements.
Capital AssetsCapital assets, which include property, plant, equipment, infrastructure assets (e.g., roads,bridges, sidewalks, and similar items), and intangible assets (e.g., water rights), are reported inthe applicable governmental or business-type activities columns in the government-widefinancial statements. Capital assets, other than infrastructure assets, are defined by the City asassets with an initial, individual cost of more than $5,000 (amount not rounded) and anestimated useful life in excess of one year. The City reports infrastructure assets on a networkand subsystem basis. Accordingly, the amounts spent for the construction or acquisition ofinfrastructure assets are capitalized and reported in the government-wide financial statementsregardless of their amount.
37
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
1. Summary of Si,qnificant Accounting Policies (continued)
D. Assets, Liabilities, and Net Assets or Equity (continued)
Capital Assets (continued)In the case of the initial capitalization of general infrastructure assets (i.e., those reported bygovernmental activities) the City chose to include all such items regardless of their acquisitiondate or amount. The City was able to estimate the historical cost for the initial reporting of theseassets through engineering records. As the City constructs or acquires additional capital assetseach period, including infrastructure assets, they are capitalized and reported at historical cost.The reported value excludes normal maintenance and repairs which are essentially amountsspent in relation to capital assets that do not increase the capacity or efficiency of the item orextend its useful life beyond the original estimate. In the case of donations the City values thesecapital assets at the estimated fair value of the item at the date of its donation.
Interest incurred during the construction phase of capital assets of business-type activities isincluded as part of the capitalized value of the assets constructed. Construction in connectionwith the business-type activities was completed in previous years so none of the interestexpense in the current year was included as part of the cost of capital assets.
Property, plant and equipment, and intangible assets of the City, as well as the component units,are depreciated/amortized using the straight-line method, with one-half year’sdepreciation/amortization in the year of acquisition, over the following estimated useful lives:
BuildingsStreet infrastructureStorm sewer infrastructureWater rightsImprovementsEquipment and vehicles
40 years40 years50 years
Contractual life20 years
3-10 years
Compensated AbsencesThe City’s policy regarding vacation leave pay permits employees to accumulate leave days at amaximum rate of 18 days per year up to 40 days. Vacation leave pay is accrued when incurredin the government-wide and proprietary funds’ financial statements. A liability for these amountsis reported in governmental funds only if they have matured, for example, as a result ofemployee resignations and retirements. The City has estimated the value of accrued vacationleave pay at December 31, 2010, to be $956,598 of which $639,023 is expected to be used in2011.
The City’s policy regarding sick leave pay permits employees to accumulate leave days at amaximum rate of 12 days per year up to 60 days. Leave may be used for sick leave,bereavement leave and personal leave. Payment for leave time in lieu of time off is computed atNovember 30th each year so that no more than 60 days are accumulated for any one individual.The City’s policy is to recognize the costs of sick leave when actually paid since employees arenot reimbursed for unused sick leave when they leave the City’s employ.
38
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
1. Summary of Si,qnificant Accountinq Policies (continued)
D. Assets, Liabilities, and Net Assets or Equity (continued)
Lonq-term ObligationsIn the government-wide financial statements, and proprietary fund types in the fund financialstatements, long-term debt and other long-term obligations are reported as liabilities in theapplicable governmental activities, business-type activities, or proprietary fund type statement ofnet assets. Bond premiums and discounts, as well as issuance costs, are deferred andamortized over the life of the bonds using the bonds outstanding method, which approximatesthe effective interest method. Bonds payable are reported net of the applicable bond premiumor discount. Bond issuance costs are reported as deferred charges and amortized over the termof the related debt.
In the fund financial statements, governmental fund types recognize bond premiums anddiscounts, as well as bond issuance costs, during the current period. The face amount of debtissued is reported as other financing sources. Premiums received on debt issuances arereported as other financing sources, while discounts on debt issuances are reported as otherfinancing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,are reported as debt service expenditures.
Fund EquityIn the fund financial statements, governmental funds report reservations of fund balance foramounts that are not available for appropriation or those that are legally restricted by outsideparties for use for a specific purpose. Designations of fund balance represent tentativemanagement plans, which are subject to change.
Net AssetsIn the government-wide financial statements, net assets of the City are classified in threecomponents. Net assets invested in capital assets net of related debt consist of property andequipment net of accumulated depreciation and reduced by the current balances of anyoutstanding borrowings used to finance the purchase or construction of those assets. Restrictednet assets are noncapital net assets that must be used for a particular purpose, as specified bycreditors, grantors, contributors, or laws or regulations. Unrestricted net assets are remainingnet assets that do not meet the definition of invested in capital assets net of related debt orrestricted.
Comparative DateComparative total data for the prior year have been presented only for individual enterprisefunds in the fund financial statements in order to provide an understanding of the changes in thefinancial position and operations of these funds.
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39
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
2. Stewardship, Compliance and Accountability
Bud.qetary InformationKansas statutes require that an annual operating budget be legally adopted for the general fund,special revenue funds (unless specifically exempted by statute), debt service funds, enterprisefunds, and internal service funds. Although directory rather than mandatory, the statutes providefor the following sequence and timetable in the adoption of the legal annual operating budget:
1. Preparation of the budget for the succeeding calendar year on or before August1st.
2. Publication in local newspaper of the proposed budget and notice of publichearing on the budget on or before August 5th.
3. Public hearing on or before August 15th, but at least ten days after publicationof notice of hearing.
4. Adoption of the final budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted budget for previouslyunbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice ofpublic hearing to amend the budget must be published in the local newspaper. At least ten daysafter publication the hearing may be held and the governing body may amend the budget at thattime.
Amendments to the original budget, including qualifying budget adjustments for bond issuancesand refunding, and grant revenue, were approved by the governing body, resulting in additionalbudget authority as follows:
FundDebt Service FundSpecial Improvements FundSpecial Recreation and Parks FundFinnup Trust FundElectric Utility FundSecurity Deposits FundWater and Sewer Utility FundHealth Insurance FundWorkers Compensation Fund
I ncrease215,000202,000
74,00178,067
1,655,000355,850
13,926,726208,000
82,028
The legal level of budgetary control is the fund level. The statutes permit transferring budgetedamounts between line items within an individual fund. However, such statutes prohibitexpenditures in excess of the total amount of adopted budget of expenditures of individualfunds. The governing body allows management to transfer budgeted amounts between lineitems within an individual fund without prior approval. Budget comparison statements arepresented for each fund showing actual receipts and expenditures compared to legally budgetedreceipts and expenditures.
40
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
2. Stewardship, Compliance and Accountability (continued)
Budgetary Information (continued)All legal annual operating budgets are prepared using the modified accrual basis of accounting,modified further by the encumbrance method of accounting. Revenues are recognized whenmeasurable and available. Expenditures include disbursements, accounts payable andencumbrances. Encumbrances are commitments by the City for future payments and aresupported by a document evidencing the commitment, such as a purchase order or contract.Encumbrances also represent commitments related to unperformed contracts for goods orservices. Encumbrance accounting - under which purchase orders, contracts and othercommitments for the expenditure of resources are recorded to reserve that portion of theapplicable appropriation - is utilized in the governmental funds. Encumbrances outstanding atyear end are reported as reservations of fund balances and do not constitute expenditures orliabilities because commitments will be honored in the subsequent year. All unencumberedappropriations (legal budget expenditure authority) lapse at year end.
A legal operating budget is not required for certain special revenue funds and capital projectsfunds. Spending in funds which are not subject to the legal annual operating budgetrequirement are controlled by federal regulations, other statutes or by the use of internalspending limits established by the governing body. Special revenue funds of the City controlledby federal regulations and state statutes include the JAG ARRA Grant, COPS Grant Technologyand Project Development funds. Capital projects controlled by spending limits established bythe governing body include the 2010-A GO Bond Projects, 2010 Temporary Note Projects, 2009GO Bond Projects, 2008-A GO Bond Projects, and 2007-A GO Bond Projects funds.
The Garden City Housing Authority is exempt from the Kansas budget laws.
B. Excess of Expenditures over AppropriationsUnder Kansas statutes, expenditures are mandated to be controlled, so that no indebtedness iscreated in excess of budgeted limits. Management is not aware of any statutory violations.
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41
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
2. Stewardship, Compliance and Accountability (continued)
Budgetary Compliance - Non-GAAP Financial StatementsBy statute, the City prepares its annual budget on a non-GAAP basis of accounting as describedin Note 2, item A. A reconciliation of these budgetary basis statements to the GAAP statementsis as follows:
Revenues (budgetary basis)Less 2009 accrued revenuesPlus 2010 accrued revenuesCapital asset donation considered
revenue for GAAP purposes
DebtGeneral Service
Fund Fund15,245,227 $ 1,744,570(1,610,532) -1,789,449 -
352,270
Revenues (GAAP basis) $ 15,776,414 $ 1,744,570
Expenditures (budgetary basis)Capital asset donation considered
expense for GAAP purposes
$ 16,634,635 $ 1,983,644
352,270 -
Expenditures (GAAP basis) $ 16,986,905 $ 1,983,644
Deficit Fund EquityThe COPS Grant Technology special revenue fund had a deficit fund balance of $3,980 as ofDecember 31,2010. The fund incurred expenditures in anticipation of receipt of grant proceeds.
The 2010 Temporary Note Projects capital project fund had a deficit fund balance of $228,885as of December 31, 2010. The fund incurred expenditures paid through the issuance oftemporary notes. The City plans to issue bonds to finance the Projects in 2011.
Compliance with Kansas StatutesReferences made herein to the statutes are not intended as interpretation of law, but are offeredfor consideration of the Director of Accounts and Reports and interpretation by the CountyAttorney and the legal representative of the City. No material violations were noted.
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42
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds
A. Deposits and InvestmentsA reconciliation of cash and investments as shown on the government-wide statement of netassets for the primary government follows:
Cash $ 16,314,942Investments, at fair value 1,973,077Restricted assets:
Cash 1,448,607Investments, at fair value 100,000
Total cash and investments $ 19,836,626
Cash on handCarrying amountofdepositsLess agency fundsCarrying amountofinvestments
$ 45019,717,458
(131,282)250,000
Total cash and investments $ 19,836,626
InvestmentsK.S.A. 9-1401 establishes the depositories which may be used by the City. The statute requiresbanks eligible to hold the City’s funds have a main or branch bank in the county in which the Cityis located, or in an adjoining county if such institution has been designated as an officialdepository, and the banks provide an acceptable rate of return on funds. In addition, K.S.Ao 9-1402 requires the banks to pledge securities for deposits in excess of FDIC coverage. The Cityhas no other policies that would further limit interest rate risk.
K.S.A. 12-1675 limits the City’s investment of idle funds to time deposits, open accounts, andcertificates of deposit with allowable financial institutions; U.S. City securities; temporary notes;no-fund warrants; repurchase agreements; and the Kansas Municipal Investment Pool. The Cityhas no investment policy that would further limit its investment choices.
At year end, the City of Garden City had no investments of this type.
At year end, the Garden City Recreation Commission had no investments of this type.
At year end, the Garden City Housing Authority had no investments of this type.
Concentration of Credit RiskState statutes place no limit on the amount the City may invest in any one issuer as long as theinvestments are adequately secured under K.S.A. 9-1402 and 9-1405.
43
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
A. Deposits and Investments (continued)
Custodial Credit Risk - DepositsCustodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not bereturned to it. State statutes require the City’s deposits in financial institutions to be entirelycovered by federal depository insurance or by collateral held under a joint custody receipt issuedby a bank within the State of Kansas, the Federal Reserve Bank of Kansas City or the FederalHome Loan Bank of Topeka except during designated "peak periods" when required coverage is50%. The City’s designated "peak periods" are with Commerce Bank from January 6 to March 7and June 6 to August 5.
At year end, the City’s carrying amount of deposits was $19,717,458 and the bank balance was$20,205,679. Ninety-seven percent of the bank balance was held by four banks resulting in aconcentration of credit risk. Of the bank balance, $5,835,268 was covered by federal depositoryinsurance; $14,370,411 was collateralized with securities held by the pledging financialinstitutions’ agents in the City’s name. The City’s cash deposits by financial institution at yearend are shown below.
Commerce BankWestern State BankFirst National BankAmerican State BankGarden City State Bank
Bank balance covered byPledged Total
FDIC securities at bankcoverage market value Unsecured balance2,835,194 $ 8,127,618 $ - $ 10,962,812
250,000 1,242,164 - 1,492,1642,250,074 849,577 - 3,099,651
250,000 3,868,394 - 4,118,394250,000 282,658 - 532,658
Total $ 5,835,268 $ 14,370,411 $ - $ 20,205,679
The carrying amount of deposits for the Garden City Recreation Commission, a discretelypresented component unit, was $616,123 and the bank balance was $638,910. The bankbalance was held by two banks resulting in a concentration of credit risk. Of the bank balance,$395,310 was covered by federal depository insurance and $243,600 was collateralized withsecurities held by the pledging financial institutions’ agents in the Recreation Commission’sname.
The carrying amount of deposits for the Garden City Housing Authority, a discretely presentedcomponent unit, was $309,315 and the bank balance was $312,797. All of the bank balancewas covered by federal depository insurance.
Custodial Credit Risk - InvestmentsFor an investment, this is the risk that, in the event of the failure of the issuer or counterparty,the Government will not be able to recover the value of its investments or collateral securitiesthat are in the possession of an outside party. State statutes require investments to beadequately secured.
44
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
ReceivablesReceivables as of year-end for the City’s individual major and nonmajor funds, and internalservice funds in the aggregate, including the applicable allowances for uncollectible accounts,are as follows:
Water NonmajorDebt Electric and Sewer and Other
General Service Utility Utility Airport Funds TotalReceivables:Taxes $ 5,065,673 $ 1,334,446 $ $ $ 406,780 $ 963,314 $ 7,770,213Special assessments 1,491,917 1,491,917Accounts and interest 321,983 1,260,163 389,274 13,597 229,927 2,214,944Other 22,932 22,932
Gross receivables 5,387,656 2,826,363 1,260,163 389,274 420,377 1,216,173 11,500,006
Less allowance foruncotlectibles (143,753) (55,506) (263,279) (85,551) (16,920) (86,206) (651,215)
Net total receivables $ 5,243,903 $ 2,770,857 $ 996,884 $ 303,723 $ 403,457 $ 1,129,967 $ 10,848,791
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45
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
C. Capital AssetsCapital asset activity for the primary government for the year ended December 31, 2010, was asfollows:
Governmental activities:Capital assets not being
depreciated:LandConstruction in
progress
Total capital assets notbeing depreciated
Capital assets beingdepreciated:Buildings and
improvementsEquipmentVehiclesFurniture and fixturesInfrastructure
Total capital assetsbeing depreciated
Balance Balance01-01-10 Additions Deductions 12-31-10
$ 1,183,776 $ $ - $ 1,183,776
1,054,391 1,073,816 1,799,568 328,639
2,238,167 1,073,816 1,799,568 1,512,415
13,383,226 1,239,316 14,622,5423,631,595 490,612 82,448 4,039,7594,781,130 335,925 247,892 4,869,163
15,463 15,46348,923,751 1,484,620 50,408,371
70,735,165 3,550,473 330,340 73,955,298
Less accumulateddepreciation for:Buildings and
improvementsEquipmentVehiclesFurniture and fixturesInfrastructure
Total accumulateddepreciation
5,817,190 340,769 6,157,9591,779,594 279,718 26,734 2,032,5783,493,127 325,599 245,052 3,573,674
15,325 15,32521,172,071 1,109,606 22,281,677
32,277,307 2,055,692 271,786 34,061,213
38,457,858 1,494,781 58,554 39,894,085
$ 40,696,025 $ 2,568,597 $ 1,858,122 $ 41,406,500
Total capital assetsbeing depreciated, net
Governmental activitiescapital assets, net
46
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
C. CapitalAssets (continued)
Business-type activities:Capital assets not being
depreciated:Land
Total capital assets notbeing depreciated
Balance Balance01-01-10 Additions Deductions 12-31-10
$ 361,870 $ - $ -
361,870 - -
Capital assets beingdepreciated:Production, storage
and distributionequipment 68,838,582 4,904,846
Golf course, clubhouse andequipment 1,675,157
Vehicles andequipment 4,673,903 397,492
Containers andequipment 3,042,503 133,300
Airport improvements 24,657,115 1,715,296
Total capital assetsbeing depreciated
203,552
102,887,260 7,150,934 203,552
Less accumulateddepreciation for:Production, storage
and distributionequipment 26,485,070 1,437,120
Golf course, clubhouse andequipment 910,770 33,822
Vehicles andequipment 2,982,389 341,439
Containers andequipment 2,083,156 47,204
Airport improvements 6,633,085 422,722
Total accumulateddepreciation 39,094,470 2,282,307
63,792,790 4,868,627
$ 64,154,660 $ 4,868,627
Total capital assetsbeing depreciated, net
Business-type activitiescapital assets, net
164,922
164,922
38,630
$ 38,63O
$ 361,870
361,870
73,743,428
1,675,157
4,867,843
3,175,80326,372,411
109,834,642
27,922,190
944,592
3,158,906
2,130,3607,055,807
41,211,855
68,622,787
$ 68,984,657
47
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
Capital Assets (continued)Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:General governmentPublic safetyPublic worksParks and recreation
118,834369,792
1,268,548298,518
Total additions to accumulated depreciation -governmental activities $ 2,055,692
Business-type activities:Electric $ 573,769Water and sewer 992,532Airport 450,214Solid waste 196,549Golf course 62,368Drainage 6,875
Total additions to accumulated depreciation -business-type activities $ 2,282,307
Capital Projects and CommitmentsThe City had several capital projects in progress at December 31, 2010. At year-end, the City’sopen project expenditures and remaining commitments with contractors, by category were asfollows:
Airport Taxiway A Phase II reconstructionAirport Taxiway A Phase III reconstructionAirport Taxiway A Phase 7 reconstructionJennie Barker Road design engineering2009 street improvement projectsSecurity room expansionHousehold hazardous waster projectGarcia Soccer Park parking2010 street improvement projectsEast Cambridge SquareZoo building improvementsHail damage repairsEagle Crest AdditionCrack sealing projectFinnup Scout Park restroomAdvanced metering infrastructure
Pr~ect ExpendedtoAuthorization 12-31-10 Commi~ed$ 647,977 $ 549,883 $ 98,094
2,463,467 2,270,675 192,7921,332,649 1,263,689 68,960
299,617 297,538 2,07913,640 3,194 10,446t4,000 3,000 11,00016,050 6,840 9,210
180,769 180,665 1041,573,709 235,323 1,338,386
261,658 127,482 134,17631,728 25,004 6,72443,102 43,102
267,777 83,174 184,603132,000 132,000
7,600 7,6003,603,579 3,483,978 119,601
Total $ 10,889,322 $ 8,530,445 $ 2,358,877
48
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
C. CapitalAssets (continued)
Capital Projects and Commitments (continued)Subsequent to year end, the City entered into capital projects with commitments to contractors,by category, as follows:
Airport security room expansionHousehold hazardous waste facilityStreet sealingWildlife fence at airport
ProjectAuthorization$ 159,850
228,000398,571773,984
Total $ 1,560,405
Discretely Presented Component UnitsCapital asset activity for the Garden City Recreation Commission for the year ended December31,2010, was as follows:
Governmental activities:Capital assets being
depreciated:Buildings and
improvementsEquipment
Total capital assetsbeing depreciated
Balance Balance01-01-10 Additions Deductions 12-31-10
$ 271,645 $ 11,220 $ $ 282,8651,244,653 75,667 1,320,320
1,516,298 86,887 1,603,185
Less accumulateddepreciation for:Buildings and
improvementsEquipment
Total accumulateddepreciation
Recreation Commissioncapital assets, net
214,651 11,241 225,892825,624 110,742 936,366
1,040,275 121,983 1,162,258
$ 476,023 $ (35,096) $ $ 440,927
49
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
C. CapitalAssets (continued)
Discretely Presented Component Units (continued)Capital asset activity for the Garden City Housing Authority for the year ended December 31,2010, was as follows:
Governmental activities:Capital assets not being
depreciated:LandConstruction in
progress
Balance Balance01-01-10 Additions Deductions 12-31-10
$ 426,144 $ $ $ 426,144
334,341 44,149 166,157 212,333
760,485 44,149 166,157 638,477Total capital assets not
being depreciated
Capital assets beingdepreciated:Buildings and
improvementsEquipment
Total capital assetsbeing depreciated
3,624,077 166,157 - 3,790,234340,898 64,047 - 404,945
3,964,975 230,204 - 4,195,179
2,440,741 139,125 - 2,579,866
1,524,234 91,079 - 1,615,313
$ 2,284,719 $ 135,228 $ 166,157 $ 2,253,790
Less accumulateddepreciation
Total capital assetsbeing depreciated, net
Housing Authoritycapital assets, net
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50
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
Detailed Notes on All Funds (continued)
D. Interfund Receivables, Payables and TransfersThe composition of interfund balances as of December 31, 2010, is as follows:
Receivable Fund Payable Fund AmountTemporary notes:
Electric Utility Nonmajor capital projects fund $ 250,000
Total $ 250,000
The outstanding balances between funds result mainly from the time lag between the dates that(1) interfund goods and services are provided or reimbursable expenditures occur, (2)transactions are recorded in the accounting system, and (3) payments between funds are made.
Kansas statutes permit the issuance of temporary notes to finance certain capital improvementprojects which will be refinanced with general obligation bonds. These temporary notes areinterfund loans for internal improvements and are to be retired with bond proceeds.
A summary of interfund transfers by fund type is as follows:
Transfers in:Nonmajor Nonmajor Internal
Debt Governmental Proprietary ServiceGenera~ Service Airport Funds Funds Funds Tota~
Transfers out:General $ $ $ $ 100,595 $ 100,000 $ 175,000 $ 375,595Electric Utility 1,185,000 270,000 30,000 1,485,000Water and Sewer Utility 331,000 15,000 20,000 366,000Nonmajor Governmental Funds 250,000 225,000 475,000Nonmajor Proprietary Funds 132,500 20,000 152,500
Total $ 1,648,500 $ $ $ 635,595 $ 325,000 $ 245,000 $ 2,854,095
Transfers are used to (1) move revenues from the fund with collection authorization to the debtservice fund as debt service principal and interest payments become due, (2) move restrictedamounts from borrowings to the debt service fund to establish mandatory reserve accounts, and(3) move unrestricted general fund revenues to finance various programs that the City mustaccount for in other funds in accordance with budgetary authorizations, including amountsprovided as subsidies or matching funds for various grant programs.
In the government-wide financial statements, transfers in and out of the internal service fundsare not reflected.
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51
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
E. Leases
Capital LeasesThe City has entered into various lease agreements to finance the acquisition of fire and policedepartment vehicles and equipment, street department equipment, and a copier for the planningand community development department. These leases qualify as capital leases for accountingpurposes and, therefore, have been recorded at the present value of the future minimum leasepayments as of the date of their inception.
The following is a summary of assets acquired through these capital lease agreements by theCity at December 31, 2010:
Vehicles and equipmentLess accumulated depreciation
GovernmentalActivities
$ 880,932(253,891)
Total $ 627,041
The future minimum lease obligations and the net present value of these minimum leasepayments as of December 31,2010, are as follows:
GovernmentalActivities
2011 $ 264,3102012 163,3522013 195,7922014 79,2842015 79,2842016 39,642
Total minimum lease paymentsLess amount representing interest
Present value of future minimumlease payments
821,664(77,131)
744,533
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52
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
E. Leases (continued)
Capital Leases (continued)The Garden City Recreation Commission has entered into lease agreements to finance theacquisition of equipment. These leases qualify as capital leases for accounting purposes and,therefore, have been recorded at the present value of the future minimum lease payments as ofthe date of inception.
The following is a summary of assets acquired through these capital lease agreements by theGarden City Recreation Commission at December 31, 2010:
Vehicles and equipmentLess accumulated depreciation
GovernmentalActivities
$ 214,157(83,505)
Total $ 130,652
The future minimum lease obligations and the net present value of these minimum leasepayments for the Garden City Recreation Commission as of December 31,2010, are as follows:
GovernmentalActivities
2011 $ 47,4412012 34,2482013 7,833
Total minimum lease paymentsLess amount representing interest
Presentvalue offuture minimumlease payments
89,522(5,658)
$ 83,864
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53
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
F. Lon.q-Term Debt
General Obligation BondsThe City issues general obligation bonds to provide funds for the acquisition and construction orimprovement of major capital assets. General obligation bonds have been issued for bothgovernmental and business-type activities. The original principal amount of general obligationbonds issued in prior years was $17,645,000. During the year, general obligation bonds totaling$16,695,000 were issued, including $12,110,000 to refund both general obligation and revenuebonds and loans.
General obligation bonds are direct obligations and the full faith and credit of the City is pledgedto their repayment. These bonds generally are issued as 5 to 15-year serial bonds with nearlyequal amounts of principal maturing each year. General obligation bonds currently outstandingare as follows:
PurposeGovernmental activities:
Internal ImprovementInternal ImprovementRefundingInternal ImprovementInternal ImprovementInternal ImprovementInternal ImprovementInternal ImprovementInternal ImprovementInternal ImprovementInternal ImprovementRefunding
Business-type activities:Internal ImprovementRefunding
OutstandingDate of Maturity Interest BalanceIssue Date Rates 12-31-10
10-01-01 11-01-11 4.10% $ 160,00012-01-02 11-01-11 3.70% 85,00012-01-03 11-01-13 3.25 to 3.60% 120,00012-01-03 11-01-14 3.35 to 3.75% 280,00009-01-05 11-01-15 3.45 to 3.80% 760,00012-15-05 11-01-11 3.50% 105,00005-01-06 11-01-16 3.75 to 4.00% 905,00004-01-07 11-01-17 3.50 to 3.65% 1,330,00009-01-08 11-01-18 2.75 to 3.70% 2,625,00007-01-09 11-01-19 2.00 to 3.30% 2,035,00008-01-10 11-01-20 1.50 to 2.75% 1,203,00012-01-10 09-01-24 2.00 to 3.25% 215,000
08-01-10 11-01-20 1.50 to 2.75% 3,382,00012-01-10 09-01-24 2.00 to 3.25% 11,895,000
Total general obligation bonds payable $ 25,100,000
Subsequent to year end, the City Commissioners authorized staff to proceed with a $1,931,400bond sale for 2011 and 2012 projects.
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54
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
Detailed Notes on All Funds (continued)
F. Long-Term Debt (continued)
General Obligation Bonds (continued)The annual debt service requirements to maturity for general obligation bonds outstanding atDecember 31, 2010, including interest payments, are as follows:
Year endingDecember 31, Principal2011 $ 1,565,5002012 1,281,2502013 1,216,5002014 1,224,0002015 1,193,0502016-2020 3,342,7002021-2024
Governmental ActivitiesInterest
$ 314 110257 167218914182 590144 737240 476
Business-type ActivitiesPrincipal Interest
1,439,500 $ 294,7901,438,750 320,3381,473,500 293,0561,506,000 265,0181,541,950 236,1657,302,300 644,652
575,000 42,005
Total $ 9,823,000 $ 1,357,994 $ 15,277,000 $ 2,096,024
Bond CovenantsThere are a number of limitations and restrictions contained in the various bond indentures. TheCity appears to be in compliance with all significant limitations and restrictions.
Current RefundingThe City issued $12,110,000 of general obligation bonds for a current refunding of $215,000 ofgeneral obligation bonds and $11,913,957 of revenue bonds and loans. The refunding wasundertaken to reduce total future debt service payments. The reacquisition price exceeded thenet carrying amount of the old debt by $18,957. This amount is being netted against the newdebt and amortized over the new debt’s life, which is the same as the refunded debt. Thetransaction also resulted in an economic gain of $1,191 and a reduction of $751,201 in futuredebt service payments.
Chan.qes in Lonq-Term LiabilitiesLong-term liability activity for the City for the year ended December 31, 2010, was as follows:
Governmental activities:General obligation bondsCapital leasesCompensated absencesNet OPEB obligation
DueBalance Balance V~thin01-01-10 Additions Retired 12-31-10 One Year
$ 10,028,700 $ 1,418,000 $ 1,623,700 $ 9,823,000 $ 1,565,500939,690 107,450 302,607 744,533 233,008788,311 786,357 618,070 956,598 639,023225,097 225,097 450,194
$ 11,981,798 $ 2,536,904 $ 2,544,377 $ 11,974,325 $ 2,437,531
$ - $ 15,277,000 $ $ 15,277,000 1,439,50012,927,595 12,927,595
- 304,726 304,726 30,360
$ 12,927,595 $ 15,581,726 $ 12,927,595 $ 15,581,726 $ 1,469,860
Total governmental activitieslong-term liabilities
Business-type activities:General obligation bondsState revolving loansPlus bond premium
Total business-type activitieslong-term liabilities
55
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
F. Lon,q-Term Debt (continued)
Chan,qes in Lon,q-Term Liabilities (continued)For the governmental activities, compensated absences are generally liquidated by the generalfund and net OPEB obligations are generally liquidated by the health insurance fund.
Long-term liability activity for the GardenDecember 31, 2010, was as follows:
Governmental activities:Capital leasesCompensated absences
City Recreation Commission for the year ended
DueBalance Balance Within01-01-10 Additions Retired 12-31-10 One Year
$ 85,322 $ 51,748 $ 53,206 $ 83,864 $ 43,78535,224 581 35,805
$ 120,546 $ 52,329 $ 53,206 $ 119,669 $ 43,785Total governmental activities
long-term liabilities
Long-term liability activity for the Garden City Housing Authority for the year ended December31, 2010, was as follows:
DueBalance Balance Within01-01-10 Additions Retired 12-31-10 One Year
Governmental activities:Compensated absences $ 16,057 $ 1,663 $ $ 17,720 $ 1,772
Conduit Debt Obii.qationsFrom time to time, the City has issued Industrial Revenue Bonds to provide financial assistanceto private-sector entities for the acquisition and construction of industrial and commercialfacilities deemed to be in the public interest. The bonds are secured by the property financedand are payable solely from payments received on the underlying mortgage loans. Uponrepayment of the bonds, ownership of the acquired facilities transfers to the private-sector entityserved by the bond issuance. Neither the City nor any political subdivision thereof is obligated inany manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities inthe accompanying financial statements.
As of December 31, 2010, there were 6 series of Industrial Revenue Bonds outstanding, with anaggregate principal amount payable of $19,895,451.
Se,qment InformationThe City issued general obligation bonds to finance its electric utility and water and sewer utility,which operate the City’s electrical system and water system and sewage treatment plant. Theelectric utility and water and sewer utility are accounted for as separate activities. Financialinformation for the electric utility fund water and sewer utility fund is shown on pages 24 through29 of this report.
56
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
3. Detailed Notes on All Funds (continued)
H. Restricted AssetsThe balances of the restricted asset accounts in the enterprise funds are as follows:
Cash:Maintenance reserveRepair and replacementBuildingSecurity deposits
Investments:Security deposits
Deferred bond costs
809,893485,421
5,260148,033
100,000184,068
Total restricted assets $ 1,732,675
4. Other Information
Risk Mana,qement and Self-InsuranceThe City is exposed to various risks of loss related to torts; theft of, damage to, and destructionof assets; errors and omissions; injuries to employees; and natural disasters for which the Citycarries commercial insurance. Settled claims from these risks have not exceeded commercialinsurance coverage for the past three years. In addition, the City has established, throughordinances, the following risk management and self-insurance funds:
The Health Insurance Fund (an internal service fund) accounts for the City’s paymentson self-insured medical costs. The City remits amounts from funds paying salaries andbenefits for the City employees to this fund based upon projected premium costs if athird party insurance carrier was used. Claims are then paid out of this fund for medicalcosts as they are filed or incurred. Retired employees are also covered by the programprovided that they pay an annual premium to the City. Since the City began self-insuring, claims liability has not exceeded departmental billings. Net assets representequity designated to pay for future catastrophic losses.
The Workers Compensation Fund (an internal service fund) accounts for the City’spayments on self-insured workers compensation and employer’s liability insurancecosts. The City transfers amounts from funds paying salaries and benefits for the Cityemployees to this fund based upon projected costs. Claims are then paid out of thisfund for workers’ claims as they are filed or incurred. Net assets represent equitydesignated to pay for future catastrophic losses.
Liabilities of the funds are reported when it is probable that a loss has occurred and the amountof the loss can be reasonably estimated. Liabilities include an amount for claims that have beenincurred but not reported (IBNRs). The result of the process to estimate the claims liability is notan exact amount as it depends on many complex factors, such as inflation, changes in legaldoctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider theeffects of inflation, recent claim settlement trends (including frequency and amount of pay-outs),and other economic and social factors. The estimate of the claims liability also includesamounts for incremental claim adjustment expenses related to specific claims and other claimadjustment expenses regardless of whether allocated to specific claims. Estimated recoveries,for example from subrogation, are another component of the claims liability estimate.
57
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
4. Other Information (continued)
Risk Mana.qement and Self-Insurance (continued)The City’s self-insurance coverage for workers compensation applies up to $400,000 peraccident on electrical employees and up to $300,000 per accident on all other employees. TheCity carries additional commercial insurance to cover risk above the preceding limits up to$1,000,000 per accident. The City’s self-insurance policy for medical insurance contains astop/loss clause of $100,000 per individual and an aggregate stop/loss clause that covers claimsabove $1,976,060. Since the City became self-insured in these areas, payments from Citydepartments have exceeded claims.
Changes in the funds’ claims liability amount in fiscal years 2009 and 2010 were:
Health Insurance Fund12-31-09 12-31-10
Workers Compensation Fund12-31-09 12-31-10
Beginning of fiscal yearliability $ 159,606 $ 198,853 $ 3,581 $ 7,450
Current year claims andchanges in estimates 2,806,768 2,850,643 143,231 320,418
Claim payments (2,767,521) (2,860,431) (139,362) (322,051)
Balance at fiscal year end $ 198,853 $ 189,065 $ 7,450 $ 5,817
Related Party TransactionsVarious departments and funds within the City provide goods and services to other operatingdepartments. Charges for these services are billed in the same manner such services would bebilled to the general public and are handled as arms length transactions in the normal course ofbusiness.
C. Commitments and Continqencies
ContractsThe City has entered into an operating agreement for the airport air traffic control tower. This isan annual agreement with fees totaling $50,963 for the year ended December 31, 2010.
CommitmentsPrior to year end the City entered into real estate purchase options for two properties withpotential cost of $295,000. The options expire on March 15, 2011. The City completed thepurchases at that time.
LitigationThe City is named as a party in various lawsuits. These lawsuits are in the discovery stages andthe effect, if any, on the City is not determinable at this time. In the opinion of management, theultimate outcome of these lawsuits will not have a material adverse effect on the financialcondition of the City.
58
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
4. Other Information (continued)
C. Commitments and Contingencies (continued)
Grant AuditsAmounts received or receivable from grant agencies are subject to audit and adjustment bygrantor agencies, principally the federal government. Any disallowed claims, including amountsalready collected, may constitute a liability of the applicable funds. The amount, if any, ofexpenditures that may be disallowed by the grantor cannot be determined at this time, althoughthe City expects such amounts, if any, to be immaterial.
Subsequent EventsSubsequent to year end, the City entered into an interlocal agreement with Finney County for therepayment of a $1,000,000 promissory note with the Secretary of Transportation of the State ofKansas, to be used to facilitate the construction of a railroad spur and provide for economicdevelopment. The interlocal agreement provides the City will provide Finney County with one-half of the annual loan payment amount with the County being responsible for the disbursementof the repayment proceeds to the Secretary of Transportation. Future minimum payments underthis agreement are as follows:
2012 $ 55,6632013 55,6632014 55,6632015 55,6632016 55,6632017-2021 278,315
Total minimum payments $ 556,630
On February 15, 2011, the City purchased real estate in the amount of $54,624 for a utilitysubstation. On April 5, 2011, the City accepted a bid for the purchase of a solid waste sideloadcollection truck in the amount of $130,709.
Airport FundOther expenses are included in this fund other than the grant expenses shown on the Scheduleof Expenditures of Federal Awards.
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59
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
4. Other Information (continued)
E. Jointly Governed OrganizationThe following organization is a jointly governed organization in which the City participates and isnot included in the basic financial statements of the City:
Garden City Information Technologies Cooperative is a jointly governed organizationbetween the City of Garden City, Kansas; the County of Finney, Kansas; Unified SchoolDistrict No. 457; Garden City Community College; and St. Catherine Hospital, createdunder KSA 12-2901. Garden City Information Technologies Cooperative is governed by aboard appointed by the participating parties. The purpose of Garden City InformationTechnologies Cooperative is to enhance the coordination and technology sharing amongthe members of the Cooperative, address the long term goals of the Cooperative thatprovide an enhanced community and regional telecommunications and integratedcommunity network, and to seek out the opportunities that are identified by the Cooperativethat provide services to local and regional interests and lead to the use of the Cooperativeas a tool for economic development. This is accomplished by coordinating technologypurchases and training, development of communication networks within Garden City andsouthwest Kansas, and providing videoconferencing, telecommuting and office accesswithin the community. The primary source of funding for Garden City InformationTechnologies Cooperative is from the general funds of the participating parties and throughprocuring grants. The City of Garden City, Kansas, contributed $7,000 to the operations ofGarden City Information Technologies Cooperative during the year ended December 31,2010. The City of Garden City, Kansas, has no equity interest nor does the City materiallycontribute to the continued existence of Garden City Information TechnologiesCooperative. Garden City Information Technologies Cooperative has a December 31styear end.
Post-Employment Health Care BenefitsUnder the Consolidated Omnibus Budget Reconciliation Act (COBRA), the City makes healthcare benefits available to eligible former employees and eligible dependents. Certainrequirements are outlined by the federal government for this coverage. The premium is paid infull by the insured. This program is offered for a duration of 18 months after the employee’stermination date. There is no cost to the City under this program, and there were threeparticipants in the program at December 31, 2010.
G. Other Post Employment Healthcare Benefits
DescriptionKansas statute provides that postemployment healthcare benefits be extended to retiredemployees who have met the age and/or service eligibility requirements. The health insurancebenefit generally provides the same coverage for retirees and their dependents as for activeemployees and their dependents. The health insurance benefit plan is a single employerdefined benefit plan administered by the City. The benefit is available for selection at retirementand is extended to retirees and their dependents until the age of 65. Grandfathered retireesmay continue coverage until death. The benefits renew on a calendar year basis. Theaccounting for the health insurance for retirees is included in the City’s health insurance fund,with the subsidy provided from the general and enterprise funds.
60
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
4. Other Information (continued)
G. Other Post Employment Healthcare Benefits (continued)
Fundin.q policyThe City provides health insurance benefits to qualifying retirees and their dependents inaccordance with Kansas law. Kansas statute, which may be amended by the State legislature,established that participating retirees may remain in the City’s health insurance plan by payingthe entire premium.
Currently, eligible retirees receive no direct contribution from the City for their medical,prescription drug and dental premium rates as established annually by the City. The requiredretiree contribution rate equals the carrier-charged premium. The carrier-charged premium forthe year ended December 31, 2010, ranged from $187 to $594 per month per retiree participant.The City appropriates funds annually for the costs associated with the retirement benefit andprovides funding for the expenditures on a pay-as-you-go basis.
Annual OPEB cost and net OPEB obliqationThe City’s annual OPEB (Other Post Employment Benefits) cost is calculated based on theannual required contribution of the employer (ARC), an amount actuarially determined inaccordance with parameters of GASB Statement No. 45. The ARC represents a level of fundingthat, if paid on an ongoing basis, is projected to cover normal cost each year and amortize anyunfunded actuarial liabilities over a period not to exceed thirty years. The following tablepresents the components of the City’s annual OPEB cost for the year, the contribution to theplan, and changes in the City’s net OPEB obligation.
Normal costAmortization of unfunded actuarial accrued liability
176,11589,982
Annual required contributionContributions made
266,O9741,000
225,097225,O97
$ 450,194
Increase in net OPEB obligationNet OPEB Obligation, January 1
Net OPEB Obligation, December 31
Fiscal Annual Employer Percentage Net OPEBYear OPEB Cost Contributions Contributed Obligation2009 $ 266,097 $ 41,000 15.4 % $ 225,0972010 266,097 41,000 15.4 450,194
Funded Status and Fundinq Pro,qressAs of January 1, 2009, the most recent actuarial valuation date, the actuarial accrued liability forbenefits was $1,939,286. The City’s policy is to fund the benefits on a pay as you go basis,resulting in an unfunded actuarial accrued liability (UAAL) of $1,939,286. The covered payroll(annual payroll of active employees covered by the plan) was $10,384,185 and the ratio of theUAAL to the covered payroll was 18.7%.
61
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
4. Other information (continued)
G. Other Post Employment Healthcare Benefits (continued)
Funded Status and Funding Progress (continued)Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts andassumptions about the probability of occurrence of events far into the future. The valuationincludes, for example, assumptions about future employment, mortality and the healthcare costtrends. Amounts determined regarding the funded status of the plan and the annual requiredcontributions of employer are subject to continual revision as actual results are compared withthe past expectations and new estimates are made about the future. The schedule of fundingprogress will present in time, multi-year trend information about whether the actuarial value ofplan assets is increasing or decreasing relative to the actuarial accrued liability for benefits.
Actuarial Methods and AssumptionsProjections of benefits for reporting purposes are based on the substantive plan and include thetypes of benefits provided at the time of valuation and the historical pattern of sharing of benefitcost between the employer and plan members to that point. The actuarial methods andassumptions used include techniques that are designed to reduce the effects of short-termvolatility in actuarial accrued liabilities and actuarial value of assets, consistent with the long-term perspective of the calculations.
In the December 31, 2010, actuarial valuation, the projection unit credit method was applied.The actuarial assumptions included a 4.0% investment rate of return which is based on longterm return experience of asset classes stipulated in the investment policy underlying applicablefunds and on recent return experience of the City. The valuation assumed annual healthcarecost trend rates of 9% to 7% in the first three years and an ultimate rate of 5.5% after threeyears. The valuation followed generally accepted actuarial methods and included tests asconsidered necessary to assure the accuracy of the results. The UAAL is being amortized overa 30 year open period in level dollar amounts.
Defined Benefit Pension PlanPlan description: The City of Garden City, Kansas, contributes to the Kansas Public EmployeesRetirement System ("KPERS") and the Kansas Police and Firemen’s Retirement System(KP&F). Both are cost sharing, multiple-employer defined benefit pension plans as provided byK.S.A. 74-4901, et seq. KPERS and KP&F provide retirement benefits, life insurance, disabilityincome benefits, and death benefits. Kansas law establishes and amends benefit provisions.KPERS and KP&F issue a publicly available financial report that includes financial statementsand required supplementary information. Those reports may be obtained by writing to KPERS(611 S Kansas, Suite 100; Topeka, KS 66603-3869) or by calling 1-888-275-5737.
Funding policy: K.S.A. 74-4919 establishes the KPERS member-employee contribution rate atup to 6% of covered salary. K.S.A. 74-4975 establishes KP&F member-employee contributionrate at up to 7% of covered salary. The employer collects and remits member-employeecontributions according to the provisions of section 414(h) of the Internal Revenue Code. Statelaw provides that the employer contribution rates be determined annually based on the results ofan annual actuarial valuation. KPERS and KP&F are funded on an actuarial reserve basis.State law sets a limitation on annual increases in the contribution rates. The KPERS employerrate established by statute for calendar year 2010 is 7.14%. The City of Garden City, Kansas,contributions to KPERS for the years ending December 31, 2010, 2009 and 2008, were$561,262, $448,232, and $396,191, respectively, equal to the statutory required contributions foreach year. The KP&F employer rate established by statute for fiscal years beginning in 2010 is12.86%. Employers participating in KP&F also make contributions to amortize the liability forpast service costs, if any, which is determined separately for each participating employer.
62
CITY OF GARDEN CITY, KANSASNotes to the Financial Statements
December 31, 2010
4. Other information (continued)
Defined Benefit Pension Plan (continued)The City of Garden City, Kansas, contributions to KP&F for the year ending December 31, 2010,2009 and 2008, were $551,548, $594,483, and $550,794, respectively, equal to the statutoryrequired contributions for each year as set forth by the legislature.
Employees of the discretely presented component units also contribute to the Kansas PublicEmployees Retirement System. All contribution requirements were met by the component unitsand their employees.
I. New PronouncementsThe GASB has issued the following statement which will have an impact on the City’s futurefinancial reporting, although it is not yet required to be implemented by the City:
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund TypeDefinitions, issued March, 2009, will be effective for the City beginning with its year endingDecember 31, 2011. This Statement is intended to improve the usefulness of informationprovided to financial report users about fund balances by providing clearer, more structuredfund balance classifications, and by clarifying the definitions of existing governmental fundtypes. Fund balance information is among the most widely and frequently used informationin state and local government financial reports. The GASB developed this standard toaddress the diversity of practice and resulting lack of consistency that had evolved in fundbalance reporting. To reduce confusion, the new standard establishes a hierarchy of fundbalance classification based primarily on the extent to which a government is bound toobserve spending constraints.
The City’s management has not yet determined the effect this Statement will have on the City’sfinancial statements.
The balance of this page intentionally left blank
63
Required Supplementary Information
64
CITY OF GARDEN CITY, KANSASSchedule of Funding Progress -Other Post Employment Benefits
December 31, 2010
As of January 1, 2009, the most recent actuarial valuation date, the actuarial accrued liability for benefitswas $1,939,286. The City’s policy is to fund the benefits on a pay as you go basis, resulting in anunfunded actuarial accrued liability (UAAL) of $1,939,286. The covered payroll (annual payroll of activeemployees covered by the plan) was $10,384,185 and the ratio of the UAAL to the covered payroll was18.7%
Net UAAL as aActuarial Actuarial Unfunded Percentage
Actuarial Value of Accrued Liability (AAL) Covered of CoveredValuation Assets (AAL) (UAAL) Funded Payroll Payroll
Date ( a ) ( b ) ( b-a ) Ratio ( c ) ( b-a )/( c )2009 $ $ 1,939,286 $ 1,939,286 0.0% 10,384,185 18.~%
65
Combining and Individual Fund
Statements and Schedules
66
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted toexpenditures for particular purposes. The Special Revenue Funds used by the City of Garden City,Kansas, are:
Community Trust:This fund was created from monies remaining in a bond reserve fund when the bond issue wasretired. Loans for capital improvements are made through and repaid through this fund. Inaddition, the fund accounts for the operating transfers to the golf course.
Capital Improvements:This fund is used to account for monies transferred in from various City funds for capital projectsthat were authorized but not completed in that year. By transferring the monies to this fund, theprojects can be completed with funds which were previously authorized for that purpose.
Recreatio n:This fund is used to account for monies received from the annual tax levy which are thendistributed to the Recreation Commission.
Special Trafficway:This fund is used to account for monies levied by the State of Kansas (i.e.: motor fuels tax)which produces revenues the City can use to defray in whole or in part the cost of constructing,altering, reconstructing, maintaining and repairing streets and highways. A portion of this fund isreserved by the motor fuels tax revenue bond - series 1993 ordinance which requires a cashreserve for the revenue bond issue. In addition, the fund is used to account for moniesdedicated to repay the principal and interest costs on the motor fuels tax revenue bond - series1993.
Special Improvements:This fund is used to account for monies received on insurance claims which are then paid out inaccordance with the claim. The fund also accounts for expenses involved in property nuisancecomplaints which are then reimbursed by the property owner.
Cemetery Endowment:This fund was established to provide monies for maintenance and upkeep of the cemetery byproviding that six percent of the cemetery space proceeds be accounted for in this fund.
Special Recreation and Parks:This fund is used to account for monies provided by a state liquor tax on private clubs which areto be expended for the purchase, establishment, maintenance or expansion of park andrecreational services, programs and facilities.
Special Alcohol Programs:This fund is used to account for monies provided by a state liquor tax on private clubs which areto be expended for the purchase, establishment, maintenance or expansion of services orprograms for alcoholism prevention and education.
67
Nonmajor Governmental Funds
Special Revenue Funds
Finnup Trust Fund:This fund is used to account for monies received from the Finnup Foundation and expended onspecified projects for Finnup Park.
Special Liability:This fund is used to account for monies reserved for the purpose of paying nondeductible claimsand related costs arising from legal actions and settlements.
Drug Enforcement:This fund is used to account for revenues passed through from the State Department of Justicewhich are matched with a percentage of City monies, all of which are to be expended for drugcontrol type expenditures.
DEA Forfeiture:This fund is used to account for monies from DEA drug forfeitures which are to be expended fordrug control type expenditures.
Community Development Loan Fund:This fund is used to account for housing rehabilitation loan repayments and expenditures forqualified housing rehabilitation loans.
Economic Development:This fund is used to account for loan repayments and new loan authorizations of moniesavailable and set aside for economic development activities within the City.
Enhanced Wireless 911:This fund is used to account for the activities of the City’s E91’1 emergency communicationssystem funded by a special telephone use fee imposed on all wireless user accounts.
Community Development Grant:This fund is used to account for a federal grant received and expenditures made for the benefitof the Emmaus House.
JAG ARRA Grant:This fund is used to account for a federal grant received and expenditures made for equipmentfor community police services.
COPS Grant Technology:This fund is used to account for a federal grant received and expenditures made for technologyequipment for local law enforcement.
Project Development:This fund is used to account for all resources received and expenditures made for projectdevelopment within the City.
68
Nonmajor Governmental Funds
Capital Projects Funds
The capital projects funds are used to account for the acquisition and construction of major capitalfacilities other than those financed by proprietary funds and trust funds.
The following funds are used to account for the financing and construction of various street, stormdrainage, sewer, wastewater and water distribution improvements within the City. Interim financing isprovided by temporary notes until the projects are completed and included in subsequent general andlimited obligation bond issues.
2010-A GO Bond Projects2010 Temporary Note Projects2009 GO Bond Projects2008-A GO Bond Projects2007-A GO Bond Projects
69
CITY OF GARDEN CITY, KANSASCombining Balance Sheet
Nonmajor Governmental FundsDecember 31, 2010
Assets
CashInvestments, at fair valueReceivables (net of allowances
for uncollectibles):TaxesOther
Total assets
Community CapitalTrust Improvements
$ 830,732 $ 200,9391,000,000 100,000
$ 1,830,732 $ 300,939
Recreation
$ 5,476
735,629
$ 741,105
SpecialTrafficway
$ 459,928308,767
195,759
$ 964,454
Liabilities and Fund Balances
Liabilities:Accounts payableInterfund payableDeferred revenueTemporary notes payable
Total liabilities
Fund balances:Unreserved
Total fund balances
Total liabilities and fund balances
1,830,732
1,830,732
$ 1,830,732
4,318 $
735,629
4,318 735,629
296,621 5,476
296,621 5,476
$ 300,939 $ 741,105
$ 24,061
24,061
940 393
940,393
$ 964,454
(continued)70
Special RevenuesSpecial Special
Special Cemetery Recreation AlcoholImprovements Endowment and Parks Programs
FinnupTrustFund
SpecialLiability
77,549 $ 7,19214,310
77,458 26,434 50,784 $ 140,820
13,650
$ 91,199 $ 21,502 $ 77,458 $ 26,434 $ 50,784 $ 140,820
$ 185 $
185
77,273
77,273
$ 77,458
91,199 21,502
91,199 21,502
$ 91,199 $ 21,502
26,434
26,434
$ 26,434
50,784
50~784
50,784
140,820
140,820
$ 140,820
71
CITY OF GARDEN CITY, KANSASCombining Balance Sheet
Nonmajor Governmental FundsDecember 31, 2010
Assets
CashInvestments, at fair valueReceivables (net of allowances
for uncollectibles):TaxesOther
Drug DEAEnforcement Forfeiture
CommunityDevelopmentLoan Fund
$ 27,290 $ 41,260 $ 5,753
Total assets $ 27,290 $ 41,260 $ 5,753
EconomicDevelopment
$ 187,990125,000
$ 312,990
Liabilities and Fund Balances
Liabilities:Accounts payableInterfund payableDeferred revenueTemporary notes payable
Total liabilities
Fund balances:Unreserved
Total fund balances
Total liabilities and fund balances
$ 144 $ 1,376
144 1,376
27,146 39,884
27,146 39,884
$ 27,290 $ 41,260
5,753
5,753
$ 5,753
312,990
312,990
$ 312 99O
(continued)72
Special RevenuesEnhanced Community
Wireless 911 DevelopmentFund Grant
JAGARRAGrant
COPSGrant
Technolo£1yProject
Development Totals
75,959 $ $ 250,000 $ 2,465,5641,548,077
9,282
$ 85,241 $ 250 000
931,38822,932
$ 4,967,961
3,98030,084
3,980735,629
3,980 769,693
4,198,268
4,198,268
$ 4,967,961
85,241
85,241
$ 85,241
(3,980)
(3,980)
250,000
250,000
$ 250,000
73
CITY OF GARDEN CITY, KANSASCombining Balance Sheet
Nonmajor Governmental FundsDecember 31,2010
Assets
CashInvestments, at fair valueReceivables (net of allowances
for uncollectibles):TaxesOther
Total assets
Capital2010-A 2010 2009
GO Bond Temporary Note GO BondProjects Projects Projects
893,156 $ 74,303 $ 245,268
$ 893,156 $ 74,303 $ 245 268
Liabilities and Fund Balances
Liabilities:Accounts payableInterfund payableDeferred revenueTemporary notes payable
Total liabilities
Fund balances:Unreserved
Total fund balances
Total liabilities and fund balances
$ 109,048 $ 53,188 $ 19,279
109,048
250,000
303,188
784,108 (228,885)
784,108 (228,885)
$ 893,156 $ 74,303
19,279
225,989
225,989
$ 245,268
74
Projects2008-A
GO BondProjects
2007-AGO BondProiects Totals
TotalNonmajor
GovernmentalFunds
8,628 $ 1,221,355 $ 3,686,9191,548,077
$ 8,628 $ $ 1,221,355
931,38822,932
$ 6,189,316
$ 181,515
250,000
431,515
789,840
789,840
$ 1,221,355
$ 211,5993,980
735,629250,000
1,201,208
4,988,108
4~988,108
$ 6,189,316
8,628
8,628
$ 8,628
75
CITY OF GARDEN CITY, KANSASCombining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental FundsFor the Year Ended December 31, 2010
Revenues:TaxesIntergovernmental revenueUse of money and propertyMiscellaneousDonationsSale of spaces
Total revenues
Expenditures:Current:
General governmentPublic safetyPublic worksParks and recreation
Capital outlayDebt service:
Bond issuance costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):Transfers inTransfers outBonds issued
Net change in fund balances
Fund balances, beginning of year
Fund balances (deficit), end of year
Community CapitalTrust Improvements Recreation
$ $ $ 845,839275,195 -
6,069 -
281,264
11,682 -
11,682 845,839
SpecialTrafficway
$777,913
1,6637
779 583
610,77985O,O37
279,341 85,818 129,244
279,341 85,818 850,037 740,023
1,923 (74,136) (4,198) 39,560
100,595250,000(450,000)
(198,077) 26,459 (4,198) 39,560
2,028,809 270,162 9,674 900,833
$ 1,830,732 $ 296,621 $ 5,476 $ 940,393
(continued)76
Special Revenues
Special CemeteryImprovements Endowment
$ $
51,998
51,998
SpecialRecreationand Parks
SpecialAlcohol
Programs
FinnupTrustFund
1,22171,25710,414
71,258
3,300
4,521
100,000
81,671 71,258 100,000
SpecialLiability
174,275 3,861
5,75631,27134,102
69,814 4,933
112,850
5,773
174,275
(122,277)
9,617
(5,096)
65,373
16,298
69,814
1,444
117,783
(17,783)
5,773
(5,773)
(122,277)
213~476
$ 91,199 $
(25,000)35,000
(5,096) (8,702) 1,444 (17,783) 29,227
26,598 85,975 24,990 68,567 111,593
21,502 $ 77,273 $ 26,434 $ 50,784 $ 140,820
77
CITY OF GARDEN CITY, KANSASCombining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental FundsFor the Year Ended December 31, 2010
Revenues:TaxesIntergovernmental revenueUse of money and propertyMiscellaneousDonationsSale of spaces
Total revenues
Expenditures:Current:
General governmentPublic safetyPublic worksParks and recreation
Capital outlayDebt service:
Bond issuance costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):Transfers inTransfers outBonds issued
Net change in fund balances
Fund balances, beginning of year
Fund balances (deficit), end of year
Drug DEAEnforcement Forfeiture
$ - $9,683
100 9744,603 13,445
54,386 13,542
56,614 10,077
CommunityDevelopment
Loan Fund
12,774
12,774
11,646
EconomicDevelopment
42,844
42~844
1,386
56,614 10,077 11,646 1~386
(2,228) 3,465 1,128 41,458
1,128
4,625
$ 5,753
(2,228) 3,465
29,374 36,419
$ 27,146 $ 39,884
41,458
271,532
$ 312,990
(continued)78
Special RevenuesCommunity JAG
Enhanced Development ARRAWireless 911 Grant Grant
63,361
COPSGrant
Technology
$ $ - $50,248 23,245 53,922
63,361 50,248 23,245 53,922
ProjectDevelopment Totals
$ 845,8391,332,721
75,182173,414111,682
3,300
2,542,138
59,324 50,248
59,324
4,037
50,248
23,245
23,245
57,902
57,902
(3,980)
250,000
381,26066,691
610,779881,308728,258
2,668,296
(126,158)
635,595(475,000)
4,037
81,204
$ 85,241
(3,980)
$ (3,980)
250,000
$ 250,000
34,437
4,163,831
$ 4,198,268
79
CITY OF GARDEN CITY, KANSASCombining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental FundsFor the Year Ended December 31,2010
Revenues:TaxesIntergovernmental revenueUse of money and propertyMiscellaneousDonationsSale of spaces
Total revenues
Expenditures:Current:
General governmentPublic safetyPublic worksParks and recreation
Capital outlayDebt service:
Bond issuance costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):Transfers inTransfers outBonds issued
Net change in fund balances
Fund balances, beginning of year
Fund balances (deficit), end of year
Capital2010-A 2010 2009
GO Bond Temporary Note GO BondProjects Projects Projects
$ - $ $
2,756
2,756
417,307 228,885 1,107,502
4~341
421,648 228,885 1,107,502
(418,892) (228,885) (1,107,502)
1,203,000
784,108 (228,885) (1,107,502)
1,333,491
$ 784,108 $ (228,885) $ 225,989
80
Projects2008-A
GO BondProjects
2007-AGO BondProjects Totals
133,023$
133,0232,756
133,023 135,779
TotalNonmajor
GovernmentalFunds
$ 845,8391,465,744
77,938173,414111,682
3,300
2,677,917
486,767
486,767
(353,744)
46,052
46,052
(46,052)
2,286,513
4,341
2,290,854
(2,155,075)
381,26066,691
610,779881,308
3,014,771
4,341
4,959,150
(2,281,233)
(353,744)
362,372
$ 8,628
(46,052)
46,052
$ -
1,203,000
(952,075)
1,741,915
$ 789,840
635,595(475,000)
1,203~000
(917,638)
5,905,746
$ 4,988,108
81
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and ActualDebt Service Fund
For the Year Ended December 31, 2010
Revenues:TaxesSpecial assessment taxesIntergovernmental revenueInterest
Total revenues
Expenditures:Bond principalBond interestFiscal and bond rating fees
Total expenditures
Revenues over (under)expenditures
Other financing sources:Proceeds of refunding bonds
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
Budc~eted AmountsOriginal Final
ActualAmountsBudgetary
Basis
1,377,000 $ 1,377,000 $ 1,370,619290,000 290,000 348,077
25,000 25,000 25,0006,000 6,000 874
1,698,000 1,698,000 1,744,570
1,623,700 1,623,700 1,623,700359,065 359,065 359,944
75,235 75,235
2,058,000 2,058,000 1,983,644
Variance withFinal Budqlet
$ (6,381)58,077
(5,126)
46,570
(879)75,235
74,356
(360,000) (360,000) (239,074) 120,926
215,000
(24,074) 120,926
213,341 68,341
$ 189,267 $ 189,267
215,000 215,000
(145,000) (145,000)
145,000 145,000
$ $
82
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualCommunity Trust Fund
For the Year Ended December 31,2010
Revenues:Intergovernmental revenueUse of money and property
Total revenues
Expenditures:Capital outlay
Total expenditures
Revenues over (under)expenditures
Other financing sources (uses):Transfers inTransfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
250,000 $ 250,00025,000 25,000
275,000 275,000
2,310,000 2,310,000
2,310,000 2,310,000
(2,035,000) (2,035,000)
250,000 250,000(200,000) (200,000)
(1,985,000) (1,985,000)
1,985,000 1,985,000
$ - $
ActualAmountsBudgetary
Basis
$ 275,1956,069
281,264
279,341
279,341
1,923
250,000(450,000)
(198,077)
2,028,809
1,830,732
Variance withFinalBudget
$ 25,195(18,931)
6,264
2,030,659
2,030,659
2,036,923
(25O,000)
1,786,923
43,809
$ 1,830,732
83
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualCapital Improvements Fund
For the Year Ended December 31, 2010
Revenues:Use of money and propertyReimbursementsDonations
Total revenues
Expenditures:Capital outlay
Total expenditures
Revenues over (under)expenditures
Other financing sources (uses):Transfers in
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
1,219 $ 1,219157,200 157,200
158,419 158,419
ActualAmountsBudgetary Variance with
Basis Final Bud~let
$ $ (1,219)(157,200)
11,682 11,682
11,682 (146,737)
317}000 317,000 85,818 231 182
317,000 317,000 85,818 231,182
(158,581 ) (158,581 ) (74,136) 84,445
(158,581 ) (158,581 )
158,581 158,581
$ $
100,595
26,459
270,162
$ 296,621
100,595
185,040
111,581
$ 296,621
84
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualRecreation Fund
For the Year Ended December 31, 2010
Budqeted AmountsOriginal Final
ActualAmountsBudgetary
BasisRevenues:
Taxes $ 847,501 $ 847 501 $ 845,839
Total revenues 847~501 847,501 845,839
Expenditures:Distribution to organization’s
treasurer 850,037 850,037 850,037
Total expenditures 850,037 850,037 850,037
Revenues under expenditures (2,536) (2,536) (4,198)
Fund balance, beginning of year 2,536 9,674
Fund balance, end of year $ $ (2,536) $ 5,476
Variance withFinal Budget
$ (1,662)
(1,662)
(1,662)
9,674
$ 8,012
85
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualSpecial Trafficway Fund
For the Year Ended December 31,2010
Revenues:Intergovernmental revenueUse of money and propertyReimbursementsMiscellaneous
Total revenues
Expenditures:Current:
Contractual servicesCommodities
Capital outlay
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budc~eted AmountsOriginal Final
725,000 $ 725,0003,000 3,000
11,700 11,700
739 700 739,700
ActualAmountsBudgetary
Basis
$ 778,1711,663
7
779,841
Variance withFinal Budget
$ 53,171(1,337)
(11,700)7
40,141
334,500 334,500 174,040 160,460103,850 103,850 436,739 (332,889)907,000 907,000 129,244 777,756
1,345,350 1,345,350
(605,650) (605,650)
605,650 605,650
$ $
740 023
39,818
704,816
$ 744,634
605,327
645,468
99,166
$ 744,634
86
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualSpecial Improvements Fund
For the Year Ended December 31,2010
Revenues:Miscellaneous
Total revenues
Expenditures:Current:
Contractual services
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budqeted AmountsOriginal Final
ActualAmountsBudgetary
Basis
$ 26,000 $ 26,900 $ 51,998
26,000 26,900 51,998
28,000 230,000 174,275
28,000 230,000 174,275
(2,000) (203,100) (122,277)
2,000 213,476 213,476
$ $ 10,376 $ 91,199
Variance withFinal Budget
$ 25,098
25,098
55,725
55,725
80,823
$ 80,823
87
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualCemetery Endowment Fund
For the Year Ended December 31, 2010
Revenues:Use of money and propertySale of spaces
Total revenues
Expenditures:Current:
CommoditiesCapital outlay
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
$ 75O $ 7504,000 4~000
4,750 4,750
14,250 14,250
14,250 14,250
(9,500) (9,500)
9,50O 9,500
$ $ -
ActualAmountsBudgetary
Basis
$ 1,2213,300
4,521
3,8615,756
9,617
(5,O96)
26,598
$ 21,502
Variance withFinal Budget
$ 471(700)
(229)
(3,861)8~494
4,633
4,404
17,098
$ 21,502
88
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualSpecial Recreation and Parks Fund
For the Year Ended December 31,2010
Revenues:Intergovemmental revenueUse of money and propertyReimbursements
Total revenues
Expenditures:Current:
Contractual servicesCapital outlay
Total expenditures
Revenues over (under)expenditures
Other financing sources (uses):Transfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
$ 65,868 $ 70,000
5,303 8,025
71,171 7&025
65,000
65,000
6,171
(25,000)
(18,829)
18,829
139,001
139,001
(60,976)
ActualAmountsBudgetary
BasisVariance withFinal Budqet
$ 71,257 $ 1,25710,414 10,414
(8,025)
81,671 3,646
31,271 107,73034,102 (34,102)
65,373 73,628
16,298 77,274
(25,000) (25,000) -
(85,976) (8,702) 77,274
85,976 85,975 (1)
$ 77,273 $ 77,273
89
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualSpecial Alcohol Programs Fund
For the Year Ended December 31, 2010
Revenues:Intergovernmental revenue
Total revenues
Expenditures:Current:
Contractual services
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
$ 66,000 $ 66,000
66,000 66,000
79,000
79,000
(13,000)
13,000
$
79,000
79,000
(13,000)
13~000
ActualAmountsBudgetary
BasisVariance withFinal Budget
$ 71,258 $ 5,258
71,258 5,258
69,814 9,186
69,814 9,186
1,444 14,444
24,990 11,990
$ 26,434 $ 26,434
90
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualFinnup Trust Fund
For the Year Ended December 31,2010
Revenues:ReimbursementsDonations
Total revenues
Expenditures:Current:
Personnel servicesCapital outlay
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budqeted AmountsOriginal Final
ActualAmountsBudgetary
BasisVariance withFinal Budget
5,500 10,000 $ $ (10,000)85,000 90,000 100,000 10,000
90,500 100,000 100,000
4,933 (4,933)90,500 168,567 112,850 55,717
90,500 168,567 117,783 50,784
(68,567) (17,783) 50,784
68,567 68,567
$ $ $ 50t784 $ 50,784
91
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualSpecial Liability Fund
For the Year Ended December 31,2010
Revenues:Reimbursements
Total revenues
Expenditures:Current:
Contractual services
Total expenditures
Revenues over (under)expenditures
Other financing sources (uses):Transfers in
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOri~linal Final
$ $
82,500
82,500
ActualAmountsBudgetary
BasisVariance withFinal Budget
$
82,500 5,773 76,727
82,500 5,773 76,727
(82,500) (82,500) (5,773) 76,727
40,000 40,000 35,000 (5,000)
(42,500) (42,500) 29,227 71,727
42,500 42,500 111,593 69,093
$ - $ $ 140,820 $ 140,820
92
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualDrug Enforcement Fund
For the Year Ended December 31,2010
Revenues:Intergovernmental revenueUse of money and propertyMiscellaneous
Total revenues
Expenditures:Current:
Contractual services
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budqleted AmountsOriginal Final
50026,500
27,000
76,000
76~000
ActualAmountsBudgetary
BasisVariance withFinal Budget
(49,000)
49,000
$
$ 9,683 $ 9,683500 100 (400)
261500 44,603 18,103
27,000 54,386 27,386
76,000 56,614 19,386
76,000 56,614 19,386
(2,228) 46,772
29,374 (19,626)
27,146 $ 27,146
(49,000)
49,000
$ -
93
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualDEA Forfeiture Fund
For the Year Ended December 31, 2010
Revenues:Use of money and propertyMiscellaneous
Total revenues
Expenditures:Current:
Contractual services
Total expenditures
Revenues over (under)o expenditures
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
5OO15,000
15,500
ActualAmountsBudgetary
Basis
38,500
38,500
5OO $ 9715,000 13,445
15~500 13,542
Variance withFinal Budget
$ (403)(1,555)
(1,958)
(23,000)
23,000
$
38,500
38,500
(23,000)
23,000
10,077
10,077
3,465
36,419
$ 39,884
28,423
28,423
26,465
13,419
39,884
94
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualCommunity Development Loan Fund
For the Year Ended December 31,2010
Revenues:Use of money and property
Total revenues
Expenditures:Current:
Contractual services
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Bud(:teted AmountsOriginal Final
ActualAmountsBudgetary
Basis
$ 15,000 $ 15,000 $ 12,774
15,000 15,000
16,750 16,750
16,750 16,750
(1,750) (1,750)
1,750 1,750
$ $
12,774
11,646
11,646
Variance withFinal Budget
$ (2,226)
(2,226)
5,104
5,104
1,128 2,878
4,625 2,875
$ 5,753 $ 5,753
95
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualEconomic Development Fund
For the Year Ended December 31,2010
Revenues:Use of money and property
Total revenues
Expenditures:Current:
Contractual
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
50,000 $ 50,000
50,000 50,000
296,000 296,000
296,000 296,000
(246,000) (246,000)
246 000 246,000
$ $
A~ualAmountsBudgeta~
Basis
$ 42,844
42,844
1,386
1,386
41,458
271,532
$ 312,990
Variance withFinal Budget
$ (7,156)
(7,156)
294,614
294,614
287,458
25,532
$ 312,990
96
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualEnhanced Wireless 911 Fund
For the Year Ended December 31,2010
Revenues:MiscellaneousIntergovemmental revenue
Total revenues
Expenditures:Capital outlay
Total expenditures
Revenues over (under)expenditures
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
$ 57,000 $ 57,000
57,000 57,0O0
100,000 100~000
100,000 100,000
(43,000) (43,000)
43,000 43,000
$ $
ActualAmountsBudgetary
Basis
$ 67,073
67,073
59,324
59,324
Variance withFinalBudget
$ 10,073
10,073
40,676
40,676
7,749 50,749
68,210 25 210
75,959 $ 75,959
97
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and ActualCommunity Development Grant Fund
For the Year Ended December 31,2010
Revenues:Intergovernmental revenue
Total revenues
Expenditures:Current:
Contractual
Total expenditures
Revenues over expenditures
Fund balance, beginning of year
Fund balance, end of year
Budgeted AmountsOriginal Final
100,000 $ 100,000
100,000 100,000
100,000 100,000
100,000 100,000
$ $
ActualAmountsBudgetary
Basis
$ 50,248
50,248
5O,248
5O,248
$
Variance withFinal Budget
$ (49,752)
(49,752)
49,752
49,752
$
98
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual2010-A GO Bond Projects
From Inception and For the Year Ended December 31,2010
Revenues:Use of money and property
Total revenues
Expenditures:Capital outlay:
Construction contractsDebt service:
Bond issuance costs
Total expenditures
Revenues over (under)expenditures
Other financing sources (uses):Bonds issued
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
PriorYears
$ $
CurrentYear
2,756
2,756
417,307
4,341
421,648
(418,892)
1,203,000
784,108
$ 784,108
TotaltoDate
$ 2,756
2,756
417,307
4,341
421,648
(418,892)
1,203,000
$ 784,108
ProjectAuthorization
4,505,000
81,200
4,586,200
(4,586,20O)
4,586,200
99
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual2010 Temporary Note Projects
From Inception and For the Year Ended December 31, 2010
Revenues:Use of money and prope~y
Total revenues
Expenditures:Capital outlay:
Construction contractsEngineering and other
Total expenditures
Revenues over (under)expenditures
Other financing sources (uses):Bonds issued
Net change in fund balance
Fund balance, beginning of year
Fund balance (deficit), end of year
Prior CurrentYears Year
$ $
Total toDate
ProjectAuthorization
$
786,150
786,150
227,1011 ~784
228,885
227,1011,784
228,885
(228,885) (228,885) (786,150)
(228,885)
$ (228,885)
$ (228,885)
786,150
$ -
100
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual2009 GO Bond Projects
From Inception and For the Year Ended December 31,2010
Revenues:Use of money and property
Total revenues
Expenditures:Capital outlay:
Construction contractsEngineering and other
Debt service:Bond issuance costs
Total expenditures
Revenues under expenditures
Other financing sources (uses):Bonds issuedTransfers inTransfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Prior Current Total toYears Year Date
ProjectAuthorization
484,155 1,107,502 1,591,657 2,073,199369,000 369,000 369,000
28,253 28,253 40,000
881,408 1,107,502 1,988,910 2,482,199
(881,408) (1,107,502) (1,988,910) (2,482,199)
2,173,700308,299
(267,100)
(1,107,502)
1,333,491
225,989
2,173,700308,299(267,100)
$ 225,989$ 1,333,491
2,173,700308,499
101
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual2008-A GO Bond Projects
From Inception and For the Year Ended December 31,2010
Revenues:Use of money and propertyIntergovernmental revenue
Total revenues
Expenditures:Capital outlay:
Construction contractsDebt service:
Bond issuance costs
Total expenditures
Revenues under expenditures
Other financing sources (uses):Bonds issuedTransfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
PriorYears
$ 9,140272,865
282,005
CurrentYear
$133,023
133,023
Total toDate
9,140405,888
415,028
2,000,315
12,830
2,013,145
(1,731,140)
486,767
486,767
(353,744)
2,191,512(98,000)
362,372 (353,744)
362,372
8,628
2,487,082
12,830
2,499,912
(2,084,884)
2,191,512(98,000)
ProjectAuthorization
2,101,200
70~800
2,172,000
(2,172,000)
2,172,000
$ 8,628 $ -
102
CITY OF GARDEN CITY, KANSASSchedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual2007-A GO Bond Projects
From Inception and For the Year Ended December 31,2010
Revenues:Use of money and property
Total revenues
Expenditures:Capital outlay:
Construction contractsEngineering and other
Debt service:Bond issuance costs
Total expenditures
Revenues under expenditures
Other financing sources (uses):Bonds issuedTransfers inTransfers out
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
PriorYears
43,849
43,849
1,512,42123,836
1,536,257
(1,492,408)
1,556,30099,160
(117,000)
46,052
CurrentYear
46,052
46,052
(46,052)
(46,052)
46,052
$
Total toDate
$ 43,849
43,849
1,558,47323,836
1,582,309
(1,538,460)
1,556,30099,160
(117,000)
ProjectAuthorization
$ -
1,731,460
23,840
1,755,300
(1,755,300)
1,755,300
103
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104
Proprietary Funds
Nonmajor Enterprise Funds
The enterprise funds are used to account for operations that are financed and operated in a mannersimilar to private business enterprises where the intent of the government’s council is that the costs ofproviding goods or services to the general public on a continuing basis be financed or recoveredprimarily through user charges; or where the government’s council has decided that periodicdetermination of net income is appropriate for accountability purposes.
The nonmajor enterprise funds used by the City of Garden City, Kansas, are:
Solid Waste Utility:This fund is used to account for the revenues generated and costs incurred in operating the Cityowned solid waste disposal and recycling operations.
Recreation Area:This fund is used to account for the fees generated and expenditures incurred in the operation of theCity-owned municipal golf course. The recreation area department includes the Golf CourseBuilding Fund which is used to account for a portion of the fees collected that are dedicated to therepayment of the golf course club house.
Drainage Utility:This fund is used to account for the revenues generated and costs incurred in operating the City’sdrainage utility.
105
Assets
CashInvestments, at fair valueRestricted assets:
Cash
Total current assets
Capital assets:LandProduction, storage and distribution
equipmentLess accumulated depreciation
Golf course, club house and equipmentLess accumulated depreciation
Vehicles and equipmentLess accumulated depreciation
ContainersLess accumulated depreciation
Total capita! assets
Total assets
Liabilities
Current liabilities:Accounts payable and accrued liabilities
Total liabilities
Net Assets
Invested in capital assets, net of related debtRestricted for debt serviceUnrestricted
Total net assets
Total liabilities and net assets
CITY OF GARDEN CITY, KANSASCombining Balance Sheet
Nonmajor Proprietary FundsDecember 31,2010
Business-type Activities -Solid Solid
Waste Waste Recreation RecreationUtility Utility Area Area
Current Year Pdor Year Current Year Pdor Year
981,301 $ 844,348 $ 149,838 $ 89,305200,000 200,000
5,260 18,1121621831 1181316 61970
1,344~132 1,162,664 155,098 114,387
68,500 68,500
1,505,118 1,397,164(993,306) (983,963)
3,175,803 3,042,503(2,130,360) (2,083,156)
1,675,157 1,675,157(944,592) (910,770)215,741 153,304
(198,358) (147,556)
1,625,755 1,441,048 747,948 770,135
2,969,887 $ 21603,712 $ 903,046 $ 884,522
$ 76,713 $ 16,257
76,713 16,257
5,814 $ 8,787
5,814 8,787
1,625,755 1,441,048 747,948 770,1355,260 18,112
1 ~267 ~419 1,146,407 144,024 87,488
2,893,174 2~587,455 897,232 875~735
2,969,887 $ 2,603,712 $ 903,04~6 $ 884,522
106
Enterprise Funds
Drainage DrainageUtility Utility Totals Totals
Current Year Prior Year Current Year Prior Year
$ 150,377 $ 207,737 $ 1,281,516 $ 1,141,390100,000 100,000 300,000 300,000
12,816 11,922
263,193 319,659
5,260 18,112175~647 137,208
1,762~423 1,596,710
70,000 70,000 138,500 138,500
337,232 157.933(8.520) (1,645)
337,232 157,933(8,520) (1,645)
1,675,157 1,675,157(944,592) (910,770)
1,720,859 1,550,468(1,191,664) (1,131,519)3,175,803 3,042,503
(2,!30,360) (2,083,156)
398,712 226,288 2,772,415 2~437,471
$ 6611905 $ 5451947 $ 41534,838 $____~410341181
6~618 $ 1,558 $ 891145 $ 261602
61618 1 558 891145 26~602
398,712 226,288 2,772,416 2,437,4715,260 18,112
256,575 318~101 1,668,018 1~551,996
655~287 544,389 4~445~693 4,007,579
$ 6611905 $ 545,94~7 $ 41534~838 $____4,034,181
107
CITY OF GARDEN CITY, KANSASCombining Statement of Revenues, Expenses and Changes in Fund Net Assets
Nonmajor Proprietary FundsFor the Year Ended December 31, 2010
Operating revenues:Charges for servicesMiscellaneousMembership and feesConcessions
Total operating revenues
Operating expenses:Personnel servicesContractual servicesCommoditiesDepreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expense):Interest incomeRent and royaltiesSale of materialsGain (loss) on disposal of assets
Total nonoperating revenues (expense)
Income (loss) before operating transfers
Transfers inTransfers out
Change in net assets
Total net assets, beginning of year
Total net assets, end of year
Business-type Activities -Solid Solid
Waste Waste Recreation RecreationUtility Utility Area Area
Current Year Prior Year Current Year Prior Year
2,733,879 $ 2,116,312650 2,806
$ $7,512 695
383,846 367,57564~844 69~491
2~734~529 2~119~118 456~202 437~761
983,928 945,021 450,158 419,331976,961 872,145 104,378 76,997191,564 186,132 146,389 152,514196,549 200,408 62,368 59,829
2,349,002 2,203,706 763,293 708,671
385,527 (84,588) (307,091) (270,910)
3,621 6,5672,300 1t,100
84,490 56,675 20 314(15,419) (17,330) 1,268
72,692 45~912 3,588 11,414
458,2t9 (38,676) (303,503) (259,496)
325,000 250,000(152,500) (60,000)
305,719 (98,676) 21,497 (9,496)
2,587,455 2,686,131 875,735 885,231
2,893,174 $ 2,587,455 $ 897,232 ~ 875~73~5
108
Enterprise Funds
Drainage DrainageUtility Utility
Current Year Prior YearTotals
Current Year
$ 205,276 $ 204,986 $ 2.939,1558,162
383,84664,844
TotalsPdorYear
$ 2,321,2983,50!
367.57569,491
205~276 204,986 3,396~007 2,761,865
47,810 46,830 1,481,896 1,411,182(3,681) 301 1,077,658 949,44347,024 33,641 384,977 372,2876,875 1,645 265,792 261,882
981028 621417 312101323 219941794
107,248 122~569 185,684 (232,929)
1,450 2.700 5.071 9,2672,200 4.500 11,100
84,510 56,989(14,151) (17,330)
3,650 2,700 79~930 60,026
110,898 125,269 265,614 (172,903)
325.000(152,500)
250,000(60,000)
110,898 125,269 438,114 17,097
544~389 419,120 4,007,579 3,990~482
$ 65.~5,287 $ 544,389 $ 4,445,693 $ 4,007,579
109
CITY OF GARDEN CITY, KANSASCombining Statement of Cash Flows
Nonmajor Proprietary FundsFor the Year Ended December 31, 2010
Cash flows from operating activities:Receipts from customersOther receiptsPayments to suppliersPayments for personnel services
Net cash provided (used) by operating activities
Cash flows from noecapital financing activities:Transfers inTransfers out
Net cash provided (used) by noncapitalfinancing activities
Cash flows from capital and related financing activities:Receipts from sale of materialsAcquisition of property, plant and equipment
Net cash used by capitaland related financing activities
Cash flows from invesfing activities:Interest incomeProceeds from sale of investmentsPurchase of investmentsRents and royalties
Net cash provided by investing activities
Net increase (decrease) in cash
Cash, beginning of year
Cash, end of year
Balance sheet classification:Cun’ent assetsRestdcted assets
Total cash, end of year
Business-type Activities -Solid Solid
Waste Waste Recreation RecreationUtility Utility Area Area
Current Year Pdor Year Current Year Prior Year
2,689,364 $ 2,110,344 $ 455,660 $ 430,963650 2,806 7,512 695
(1,108,069) (1,165,722) (253,740) (242,372)(983,928} (945,021) (450,158) (419,331)
598,017 2,407 (240,725.). (230,045)
(152,500) (60,000)
( 152,500) (60,000)
325,000 250,000
325 000 250~000
84,490 56,675 20 314(396,675) (255,729) (38,913) (16,150)
(312,185) (199,054) (38,893) (15,836)
3,621 6,567200,000 450,000
(200,000) (200,000)2,300 11,100
3,62~ 256,567 2,300 11~100
136,953 (80) 47,681 15,219
844r348 844~428 107~417 92~198
$ 9811301 $ 844,348 $ 155~09~ $ 107~417
$ 981,301 $ 844,348 $ 149,838 $ 89,3055,260 18,112
$ 981,30~ $ 844,348 $ 155,098__ $__107,417
Reconcilation of operating income (loss) to net cashprovided (used) by operating acfiviifies:Operating income (loss)Adjustments to reconcile operating income to
net cash provided (used) by operating activities:DepreciationChange in assets and liabilities:
(Increase) decrease in receivablesIncrease (decrease) in accounts payable
Net cash provided (used) by operating activities
385,527 $ (84,588) $ (307,091) $ (270,910)
196,549 200,408 62,368 59,829
(44,515) (5,968) 6,970 (6,103)60,456 (107,445) (2,9732 (12,861)
598,01~ $ 2,407 $ (240,726~ $ (230,045)
110
Enterprise Funds
Drainage DrainageUtility Utility Totals Totals
Current Year Prior Year Current Year Prior Year
$ 204,382 $ 204,558 $ 3,349,406 $ 2,745,8658,162 3,501
(38,283) (35,674) (1,400,092) (1,443,768)(47,810) (46,830) (1,481,896) (1,411,182)
118,289 122,054 475,580 (105,584)
325,000 250,000(152,500) (60,000)
172,500 190,000
(179,299) (157,933)
(179,299) (157,933)
84,510 56,989(614,887) (429,812)
(530,377) (372,823)
1,450 2,700 5,071 9,267100,000 t00,000 300,000 550,000
(I00,000) (I00,000) (300,000) (300,000)2,200 4,500 11,100
3,650 2,700 9,571 270~367
(57,360) (33,179) 127,274 (18,040)
207,737 240,916 1,159,502 1,177,542
$ 150,377 $ 207,737 $ 1,286,776 $ 1,159,502
$ 150,377 $ 207,737 $ 1,281,516 $ 1,141,3905,260 18,112
$__150_,377 $ 207,737 $ 1 286,776 $ 1,159,502
$ 107,248 $ 122,569 $ 185,684 $ (232,929)
6,875 1,645 265,792 261,882
(894) (428) (38,439) (12,499)5,060 (1,732) 62,543 (122,038)
$__118,289 $ 122,054 $ 475,580 $ (105,584)
111
Proprietary Funds
Internal Service Funds
The internal service funds are used to account for the financing of goods or services provided by onedepartment or agency to other departments or agencies of the City or to other governmental units on acost-reimbursement basis. The internal service funds used by the City of Garden City, Kansas, are:
Health Insurance:This fund is used to account for the City’s departmental billings made monthly on a set amount peremployee and expended on qualified medical costs as provided for in the City’s self-insured healthinsurance program.
Workers Compensation:This fund is used to account for transfers from the Employee Benefit Fund used to pay qualifiedexpenditures as provided for in the City’s self-insured worker’s compensation program.
112
CITY OF GARDEN CITY, KANSASCombining Balance Sheet
Internal Service FundsDecember 31,2010
Assets
Current assets:CashInvestments, at fair value
Total assets
HealthInsurance
$ 863,612
$ 863,612
WorkersCompensation Totals
$ 250,496 $ 1,114,108125,000 125,000
$ 375~496 $ 1,239,108
Liabilities
Current liabilities:Accounts payable
Noncurrent liabilities:Net OPEB obligation
Total liabilities
$ 189,065 $ 5,817
450,194
639,259 5,817
$ 194,882
450,194
645,o76
Net Assets
Restricted for health insuranceRestricted for workers compensation
Total net assets
Total liabilities and net assets
224,353
224,353
$ 863,612
369,679
369,679
$ 375,496
224,353369,679
594,032
$ 1,239,108
113
CITY OF GARDEN CITY, KANSASCombining Statement of Revenues, Expenses and Changes in Fund Net Assets
Internal Service FundsFor the Year Ended December 31,2010
Operating revenues:Department billings
Total operating revenues
Operating expenses:Contractual
Total operating expenses
Operating loss
Nonoperating revenues:Interest income
Loss before operating transfers
Operating transfers between funds:Transfers in
Change in net assets
Total net assets, beginning of year
Total net assets, end of year
Health WorkersInsurance Compensation
$ 2,284,530
2,284,530
Total
$ 2,284,530
2,284,530
2,850,643 320,418 3,171,061
2,850,643 320,418 3,171,061
(566,113) (320,418) (886,531)
1,194
(566,113) (319,224)
245,000
(566,113) (74,224)
790,466 443,903
$ 224,353 $ 369,679
1,194
(885,337)
245,000
(640,337)
1,234,369
$ 594,032
114
CITY OF GARDEN CITY, KANSASCombining Statement of Cash Flows
Internal Service FundsFor the Year Ended December 31,2010
Cash flows from operating activities:Other receiptsClaims paid
Net cash used by operating activities
Cash flows from noncapital financing activities:Transfers in
Net cash provided bynoncapital financing activities
Cash flows from investing activities:Interest income
Net cash provided byinvesting activities
Net decrease in cash
Cash, beginning of year
Cash, end of year
HealthInsurance
$ 2,284,530(2,635,334)
(350,804)
(350,804)
1,214,416
$ 863,612
WorkersCompensation
$(322,051)
(322,051)
Total
$ 2,284,530(2,957,385)
(672~855)
245,000 245,000
245,000
1,194
245,000
1,194
1,194
(75,857)
326,353
250,496
1,194
(426,661)
1,540,769
$ 1,114,108
Reconcilation of operating loss to net cashused by operating activities:Operating lossAdjustments to reconcile operating loss
to net cash used by operating activities:Decrease in accounts payableIncrease in net OPEB obligation
Net cash used by operating activities
$ (566,113)
(9,788)225,097
$ (350,804)
$ (320,418)
(1,633)
$ (322,051)
$ (886,531)
(11,421)225,097
$ (672,855)
115
Fiduciary Funds
Agency Accounts
The Agency Accounts are used to account for assets held by the City as an agent for other funds. TheAgency Accounts used by the City of Garden City, Kansas, are:
Payroll Clearing Account:This fund is used to account for employee earnings and related benefits which are then distributed tothe corresponding City departments.
Bail Bonds Account:This fund is used to account for monies held as bail bonds by the police department.
Special Investigations Account:This fund is used to account for monies received by the police department all of which are to beexpended for drug control and special investigation type expenditures.
116
Payroll Clearing Account:Assets
Cash
LiabilitiesAccounts payable
CITY OF GARDEN CITY, KANSASCombining Statement of Changes in Assets and Liabilities
Agency AccountsFor the Year Ended December 31, 2010
Balance01-01-10 Additions Deductions
$ 15~792 $ 12,681~745 $ 12~697,548
$ 15,792 $ 12,681 745 $ 12,697,548
Balance12-31-10
$ (11)
$ (11)
$ 120,176
$ 120,176
$ 11,117
$ 1!,117
Bail Bonds Account:Assets
Cash
LiabilitiesAccounts payable
$ 81,489
$ 81,489
$ 4,100
$ 4,100
$ 230~048 $ 191,361
$ 230,048 $ 191,361
Special Investigations Account:Assets
Cash
LiabilitiesAccounts payable
$ 22,517 $ 15,500
$ 22,517 $ 15,500
Totals:Assets
Cash
LiabilitiesAccounts payable
101,381
$ 101,381
$ 12,934,310 $ 12,904,409
$ 12,934,310 $ 12,904,409
$ 131,282
$ 131,282
117
Supplementary Information
The Supplementary Information is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements of the City of Garden City, Kansas.
118
CITY OF GARDEN CITY, KANSASSchedule of Investments
December 31, 2010
Idle FundsCertificates of deposit
Total Idle Funds investments
Special Revenue FundsCommunity Trust - Certificates of depositCapital Improvement - Certificates of depositSpecial Trafficway - Certificates of depositCemetery Endowment - Certificates of depositEconomic Development - Certificates of deposit
Total Special Revenue Funds investments
Electric UtilityGeneral - Temporary notesSecurity Deposit - Certificates of deposit
Total Electric Utility investments
Solid Waste UtilityGeneral - Certificates of deposit
Draina.qe UtilityGeneral - Certificates of deposit
Workers Compensation ReserveCertificates of deposit
Total investment - all funds
$ 5,095,269
5,095,269
1,000,000100,000308,767
14,310125,000
1,548,077
250,000100,000
350,000
200,000
100,000
125,000
$ 7,418,346
119
CITY OF GARDEN CITY, KANSASComparison of Cash Balances with Encumbrances and Composition of Cash
For the Year Ended December 31, 2010
Fund
Genera[
Debt Service FundBond and Interest
Unencumbered Receipts Expenditures Unencumbered Add Payables Treasurer’sCash Balance and and Cash Balance and Cash
01-01-10 Transfers Transfers 12-31-10 Encumbrances 12-31-10
$ 3,320~024 $ 17,001,177 $ 17,010,230 $ 3,310,971 $ 408~032 $ 3,719~003
2131341 119591570 1,9831644 1891267 1891267
Special Revenue FundsCommunity Trust 2.028,809 531.264 729.341 1,830,732Capital Improvements 270.162 112.277 85.818 296.621 4.318Recreation 9,674 845.839 850.037 5.476Special Trafficway 704,816 779,841 740,023 744.634 24,061Special Improvements 213.476 51.998 174,275 91.199Cemetery Endowment 26.598 4,521 9.617 21,502Special Recreation and Parks 85.975 81,671 90,373 77,273 185Special Alcohol Programs 24.990 71.258 69,814 26.434Finnup Trust Fund 68,567 100,000 117,783 50,784Special Liability 111,593 35,000 5.773 140.820Drug Enforcement 29.374 54,386 56.614 27,146 144DEA Forfeiture 36.419 13.542 10,077 39,884 1,376Community Development Loan Fund 4.625 12.774 11.646 5,753Economic Development 271,532 42.844 1,386 312,990Enhanced Wireless 911 68,210 67.073 59,324 75.959Community Development Grant 50,248 50,248JAG ARRA Grant 23.245 23.245COPS Grant Technology 53.922 57.902 (3.980)Project Development 250,000 250,000
1.830.732300.939
5.476768,695
91.19921,50277,45826.43450,784
140,82027.29041,260
5.753312.99075,959
(3,98O)250,000
Total Special Revenue 3,954,820 3~181,703 3,143,296 3,993,227 30,084 4,023,311
Capital Projects Funds2010-A GO Bond Projects2010 Temporary Note Projects2009 GO Bond Projects2008-A GO Bond Projects2007-A GO Bond Projects
1,205.756 42t.648 784,108 109,048 893,156250.000 228,885 21,115 53.188 74,303
1,333,491 1.107,502 225,989 19,279 245,268362.372 133,023 486.767 8.628 8,62846,052 46,052
Total Capital Projects 1 ~741 ~915 1 ~588,779 2~290~854 1,039,840 181 ~515 1 ~221 ~355
Enterprise FundsElectdc Utility:
General 3,638,389 24,951.477 24.768,538 3,821.328 1,272,461 5.093.789Security Deposits 245,544 122,531 120,041 248,034 248 034
Total Electdc Utility 3,883~933 25~074~008 24~888~579 4~069~362 1 ~272~46t 5~341 ~823
Water and Sewer Utility:General 360,511 20,936,812 20.372,728 924,595 203,662 1.128,257Water and Sewage Maintenance
Reserve 762,091 t97.801 150,000 809,892 809,892Wastewater Repair and Replacement 453,906 131,515 100,000 485~421 485,421
Total Water and Sewer Utility 1,576,508 21,266,128 20,622,728 2,219,908 203,662 2,423,570
Airport:General 280.142 769.702 674.967 374,877 39.425 414.302Airport Improvement 206,716 1,629,530 1,715~296 120,950 120,950
Total Airport 486,858 2~399~232 2~390~263 495~827 39~425 535~252
Solid Waste Utility:General 1~028~589 2,777,848 2~701~628 1,104~809 76~713 1~181~522
Recreation Area:General Golf Course 81.488 778,443 715.907 144,024 5.814 149.838Golf Course Building 24,112 5,079 23~931 5,260 5,260
Total Recreation Area 105~600 783~522 739,838 149,284 5~814 155,098
Drainage Utility:General 306,179 208,307 270,452 244,034 6,618 250,652
Intemal Service FundsHealth Insurance (209.534) 2.624.530 2.850.643 (435.647) 639.259 203.612Health Insurance Reserve 1.000,000 340.000 660.000 660.000Workers Compensation 7.430 245.000 255,418 (2.988) 5,817 2.829Workers Compensation Reserve 436~473 1~194 65~000 372~667 372~667
Total Internal Service 1,234,369 2,870,724 3,511,061 594,032 645,076 1,239,108
(continued)120
CITY OF GARDEN CITY, KANSASComparison of Cash Balances with Encumbrances and Composition of Cash
For the Year Ended December 31,2010
Fun_Jd(continued)Aqency Accounts
Payroll Clearing AccountBail Bonds AccountSpecial Investigations Account
Total Agency Accounts
Total all funds(memorandum only)
Composition of TreasureCs CashCommerce BankWestern State BankFirst National BankAmerican State BankGarden City State Bank
Plus deposits in transitLess outstanding checks
Total cash in banks
Utility petty cash accountsAccounts receivableInvestments
Total cash
Unencumbered Receipts ExpendituresCash Balance and and
01-01-10 Transfers Transfers
Unencumbered Add Payables Treasurer’sCash Balance and Cash
12-31-10 Encumbrances 12-31-10
$ 12,681,745 $ 12,681,745230,048 230,04822,517 22,517
1219341310 1219341310
$ $ (11) $ (11)120,176 120,176
11~117 11~117
131,282 131,282
$ 17,852,136 $ 92,045,30~8 $ 92,486,88~3 $ 17,410,561 $ 3,000,68._L2
$ 5,217,801492,164
3,099,6513,893,394
332,6583,682
(240,237)
$ 20,411,243
$ 12,799,113
45O193,334
7,418,346
$ 20,411,243
121
CITY OF GARDEN CITY, KANSASSchedule of Insurance
December 31, 2010
Type of Insurance - Insurer
Buildings and personal property -The St. Paul Travelers Companies
Commercial auto -The St. Paul Travelers Companies
Commercial general liability -The St. Paul Travelers Companies
Aviation insurance and airport liability -Global Aerospace, Inc.
Law enforcement liability -The St. Paul Travelers Companies
Employee dishonesty coverage -The St. Paul Travelers Companies
Public officials liability -The St. Paul Travelers Companies
Gas well liability -Mid-Continent Casualty Company
PolicyNumber
GP09314453
GP09314453
GP09314453
ALI14000619
GP09314453
GP09314453
GP09314453
04GL000776078
ExpirationDate
12/31/2010
12/31/2010
12/31/2010
02/01/2011
12/3112010
12/31/2010
12/31/2010
12/07/2011
InsuredAmount
$ 52,477,587
1,000,000/1,000,000
1,000,000
1,000,000
1,000,000
250,000
1,000,000/1,000,000
1,000,000
122
.
STATISTICAL
SECTION
Statistical Section
This part of the City of Garden City, Kansas, comprehensive annual financial report presents detailedinformation as a context for understanding what the information in the financial statements, notedisclosures, and required supplementary information says about the City’s overall financial health.
Contents
Financial TrendsThese schedules contain trend information to help the reader understand howthe City’s financial performance and well-being have changed over time.
Revenue CapacityThese schedules contain information to help the reader assess the City’smost significant local revenue source, the property tax.
Debt CapacityThese schedules present information to help the reader assess theaffordability of the City’s current levels of outstanding debt and the City’sability to issue additional debt in the future.
Demographic and Economic InformationThese schedules offer demographic and economic indicators to help thereader understand the environment within which the City’s financial activitiestake place.
Operating InformationThese schedules contain service and infrastructure data to help the readerunderstand how the information in the City’s financial report relates to theservices the City provides and the activities it performs.
Page
124
136
142
149
151
Source: Unless otherwise noted, the information in these schedules is derived from the comprehensiveannual financial reports for the relevant year.
Note: The 2008 amounts for the government-wide and governmental-type activities have been restatedfor prior period adjustments as discussed in Note 4, item K, on page 62 of the 2009 report.
Note: The 2007 amounts for the government-wide and business-type activities have been restated forprior period adjustments as discussed in Note 4, item J, on pages 59 through 60 of the 2008 report.
Note: The City implemented GASB 34 in 2003, so net assets by components and changes in net assetsare only available for the last seven years.
123
CITY OF GARDEN CITY, KANSASNet Assets by Components
Last Eight Fiscal Years(accrual basis of accounting)
Governmental activities:Invested in capital assets, net of related debtRestrictedUnrestricted
Total governmental activities net assets
Business-type activities:Invested in capital assets, net of related debtRestrictedUnrestricted
Total business-type activities net assets
Primary government:Invested in capital assets, net of related debtRestrictedUnrestricted
Total primary government net assets
Fiscal2003 2004 2005 2006
$ 26,753,243 $ 29,444,859 $ 30,340,781 $ 30,082,449319,897 234,496 322,545 141,758
7,127,123 8,330,258 9,259,051 9,575,188
$ 34,200,263 $ 38,009,613 $ 39,922,377 $ 39,799,395
$ 41,003,482 $ 40,958,332 $ 41,500,141 $ 44,028,2341,021,182 1,025,473 1,064,866 1,102,9759,230,778 9,436,297 9,538,962 9,092,540
$ 51,255,442 $ 51,420,102 $ 52,103,969 $ 54,223,749
$ 67,756,725 $ 70,403,191 $ 71,840,922 $ 74,110,6831,341,079 1,259,969 1,387,411 1,244,733
16,357,901 17,766,555 18,798,013 18,667,728
$ 85,455,705 $ 89,429,715 $ 92,026,346 $ 94,023,144
124
Year2007 2008 2009 2010
$ 32,766,383 $ 32,525,667 $ 31,454,153 $ 31,975,036232,006 256,240 213,341 189,267
8,468,785 9,943,841 9,543,948 8,541,673
$ 41,467,174 $ 42,725,748 $ 41,211,442 $ 40,705,976
$ 45,622,009 $ 47,733,618 $ 51,227,065 $ 53,353,8001,137,405 1,259,840 1,234,110 1,484,6418,918,876 8,677,126 9,314,091 10,520,459
$ 55,678,290 $ 57,670,584 $ 61,775,266 $ 65,358,900
$ 78,388,392 $ 80,259,285 $ 82,681,218 $ 85,328,8361,369,411 1,516,080 1,447,451 1,673,908
17,387,661 18,620,967 18,858,039 19,062,132
$ 97,145,464 $ 100,396,332 $ 102,986,708 $ 106,064,876
125
CITY OF GARDEN CITY, KANSASChanges in Net AssetsLast Eight Fiscal Years
(accrual basis of accounting)
ExpensesGovernmental activities:
General governmentPublic safetyPublic worksParks and recreation~nterest on long-term debt
Total governmental activities expenses
Business-type activities:ElectricWater and sewerAirportSolid wasteGolf courseHousingDrainage
Total business-type activities expenses
Total pdma~y government expenses
Program RevenuesGovernmental activities:
Charges for services:General governmentPublic safetyPublic worksParks and recreation
Operating grants and contributionsCapital grants and contributions
Total governmental activities program revenues
Business-type activities:Charges for services:
ElectricWater and sewerAirportSolid wasteGolf courseDrainage
Operating grants and contributionsTotal business-type activities program revenues
Total pdmary government program revenues
Net (expense)/revenue:Governmental activitiesBusiness-type activities
Total primary government net expense
General Revenues and Other Changes in Net AssetsGovernmental activities:
Taxes:Property taxesSales taxesFranchise taxesOther taxes
Investment earningsMiscellaneousTransfers
Total governmental activities
Business-type activities:Taxes:
Property taxesInvestment earningsMiscellaneousGain on disposal of capital assetsTransfers
Total business-type activities
Total primary government
Change in Net AssetsGovernmental activitiesBusiness-type activities
Total primary government
Fiscal Year2003 2004 2005 2006 2007
$ 6,425,634 $ 6,507.206 $ 7,316.396 $ 8,515,542 $ 6.838,6815,837,395 5,897,958 5,867,304 6,326,228 6.930,3031,787,800 1,341,869 771,928 2,238,682 865,7621,715,201 1,614,017 2,294.948 1.707,918 2,316,097
423,111 325,608 277 659 281,904 323,81216,189,141 15,686,658 16.528,235 19,070,274 17,274.655
14,555,759 13,966,263 14,352,413 16,228,944 16,942,3214,034,173 4,757,292 5,424,249 5,033.390 5,100,9611,017.403 1,244,054 1,067,487 1,091,263 1,161,8501,748,618 1,769.639 1,821,275 1,855,054 2,044,744
496,069 628,578 633,050 661,343 659,059168,013 182.176 193,477 5,397 7,34177,577 61,790 312,337 56,973 133,167
22,097,612 22,609,792 23,804,288 24,932,364 26,049.443
38,286,753 $ 38,296,450 $ 40,332,523 $ 44,002,638 $ 43,324,098
248,618 $ 201,684 $ 226,808 $ 339,891 $ 318,9711,103,543 1,482,633 1,507,534 1,430.306 1,347,231
373 17,319 141 4818,655 18,532 19,201 18,063 79,529
3,117,098 2,678,825 2,333,272 2,282,281 1,433,246647,313 1,032,749 636,251 534,787 674,112
5,135,600 5,431,742 4,723,207 4,605,376 3,853,089
$
$
$
16,397,919 15,332,112 16,495,795 17,230,391 18,868,0925,213,894 5,065,747 5,376,382 5,428,052 5,376,025
283,180 292,182 313,163 337,710 342,0712,079,692 1,972,994 2,070,307 2,088,905 2,078.521
302,095 389,652 381.543 393,040 390,248116,347 127,628 128,904 130,602 202.059
2,732,848 720.761 273,961 2,019,509 621,95227,125,975 23,901,076 25,040,055 27,628,209 27.878,968
32,261,575 $ 29,332,818 $ 29,763,262 $ 32,233,585 $ 31,732,057
(11,053,541) $ (10,254,916) $ (11,805,028) $ (14,464,898) $ (13,421,566)5,028,363 1.291,284 1,235,767 2,695,845 1,829,525
$ (8,963,632).. $ (10,569,261___) $ (11,769,053~) $ (11,592,041)(6,025,178)
3,888,695 $ 4,055,007 $ 4,253,964 $ 3,983,104 $ 4.346,4596,110,402 6,449,808 6,289,182 6,562,890 7,079.556
642,811 627,919 705,538 720,481 836.308434,807 600.950 608,946 652,469 650,440355,442 318,808 505,618 956.891 890,270
50,053 42,873 65,898 201,909 109,7341,393,587 1,968,901 1,288,646 1,264,172 1.176.578
12,875.797 14,064,266 13.717,792 14,341,916 15,089,345
$
$
$
434.842 281.976 275,754 423,666 374,10249,717 38.951 64.336 102.658 136,897
611,840 510,640 396,656 161,783 290,59517,930
(1,393,587) (1,976,121) (1,288,646) (1,264.172) (1,176,578)(297,188) (1,126,624) (551,900) (576,065) (374,984)
12,578,609 $ 12,937,642 $ 13.165,892 $ 13,765,851 $ 14,714,361
1,822,256 $ 3.809,350 $ 1.912,764 $ (122,982) $ 1,667.7794,731,175 164,660 683,867 2,119,780 1,454,541
6,553,431 $ 3,974,010 $ 2,596,631 $ 1,996,798 $ 3,122,320
126
2008 2009 2010
$ 6,653,078 $ 6,699,734 $ 4,698,2667,312,265 9,631,721 10,520,5052,425,119 2,768,845 3,997,8772,958,139 3,854,085 2,766,802
328,853 372,770 400,61119,677,454 23,327,155 22,384,061
19,396,414 18,798,030 21,157,5065,393,462 5,588,047 5,666,1561,354,229 1,305,582 1,107,9342,149,923 2,221,036 2,364,421
632,179 708,671 763,2931,905
98,346 82,417 98,02829,026,458 28,703,783 31,157,338
$ 48,703,912 $ 52,030,938 $ 53,541,399
$ 542,897 $ 373,066 $ 449,4621,356,357 1,458,791 1,594,491
32,69817,764 54,137 16,734
2,079,099 2,403,258 1,657,675642,208 615,363 837,029
4,671,023 4,904,615 4,555,391
20,784,933 21,424,209 23,072,8445,596,886 6,266,262 7,092,827
319,904 326,444 286,3262,096,321 2,116,312 2,733,879
407,705 437,066 448,690202,133 204,986 205,276
2,175,426 3,432,840 1,629,53031,583,308 34,208,119 35,469,372
$ 36,254,331 $ 39,112,734 $ 40,024,763
$ (15,006,431) $ (18,422,540) $ (17,828,670)2,556,850 5,504,336 4,312,034
$ (12,449,581) $ (12,918,204) $ (13,516,636)
$ 4,407,894 $ 4,978,312 $ 5,193,2168,076,358 7,843,971 8,505,990
848,048 776,554 707,656725,920 753,351 761,578714,423 395,687 301,284151,646 129,959 174,980
1,340,716 2,030,400 1,678,50016,265,005 16,908,234 17,323,204
363,283 419,206 471,787104,615 13,934 5,929308,262 197,606 471,116
1,268(1,340,716) (2,030,400) (1,678,500)
(564,556) (1,399,654) (728,400)
$ 15,700,449 $ 15,508,580 $ 16,594,804
$ 1,258,574 $ (1,514,306) $ (505,466)1,992,294 4~I04,682 3,583,634
$ 3,250,868 $ 2,590,376 $ 3,078,168
127
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128
CITY OF GARDEN CITY, KANSASGovernmental Activities Tax Revenues by Source
Last Ten Fiscal Years(accrual basis of accounting)
FiscalYear
2001200220032004200520062007200820092010
MotorProperty Vehicle Sales Franchise Other
Tax Tax Tax Taxes Taxes Total
$ 3,288,445 $ 508,717 $ 6,090,330 $ 763,910 $ 232,105 $ 10,883,5073,416,999 522,150 5,967,700 548,443 237,200 10,692,4923,786,725 536,777 6,110,402 642,811 11,076,7154,054,769 583,511 6,449,808 627,919 17,677 11,733,6844,215,809 642,697 6,289,182 705,538 4,404 11,857,6303,972,128 652,469 6,562,890 720,481 10,976 11,918,9444,337,090 650,440 7,079,556 839,308 9,369 12,915,7634,400,476 725,920 8,076,358 848,048 7,418 14,058,2204,963,808 753,351 7,843,971 776,554 14,504 14,352,1885,181,820 761,578 8,505,990 707,656 11,396 15,168,440
2010
2009
2008
2007
2OO6
2005
2004
2003
2002
2001
$500,000 $2,500,000 $4,500,000 $6,500,000 $8,500,000 $10,500,000 $12,500,000 $14,500,000 $16,500,000
mProperty Tax EIMotor Vehicle Tax resales Tax =lFranchise Taxes QOther Taxes
129
CITY OF GARDEN CITY, KANSASFund Balances of Governmental Funds
Last Ten Fiscal Years(modified accrual basis of accounting)
General fund:Unreserved
Total general fund
AI~ other governmental funds:ReservedUnreserved, reported in:
Special revenue fundsCapital project funds
Total all other governmental funds
2001 2002
$ 3,119,961 $ 2,130,785
$ 3,119,961 $ 2,130,785
$ 291,849 $ 257,191
2,458,700 2,443,2931,885,068 604,561
$ 4,635,617 $ 3,305,045
$
$
2OO3
3,499,186
3,499,186
2004
$ 4,331,026
$ 4,331,026
319,897
3,001,545(114,888)
3,206,774
$ 234,496
2,914,907223,430
$ 3,372,833
130
Fiscal Year2005 2006 2007 2008 2009
$ 4,644,051 $ 4,686,557 $ 4,599,827 $ 4,857,753 $ 4,930,556
$ 4,644,051 $ 4,686,557 $ 4,599,827 $ 4,857,753 $ 4,930,556
$ 322,545 $ 141,758
2,563,468 3,327,2951,248,935 819,556
$ 4,134,948 $ 4,288,609
$ 232,006 $ 256,240 $ 213,341
3,844,311 4,401,327 4,163,83119,309 1,857,190 1,741,915
$ 4,095,626 $ 6,514,757 $ 6,119,087
2010
$ 5,100,420
$ 5,100,420
$ 189,267
4,198,268789,840
$ 5,177,375
131
CITY OF GARDEN CITY, KANSASChanges in Fund Balances of Governmental Funds
Last Ten Fiscal Years(modified accrual basis of accounting)
Revenues:TaxesSpecial assessment taxesIntergovernmental revenueFranchisesLicenses and permitsUse of money and propertyReimbursements/Insurance proceedsMiscellaneousDonationsCemeteryPolice and municipal courtFireEngineeringInspectionPlanning and zoningParks and zoo
Total revenues
Expenditures:Current:
General governmentPublic safetyPublic worksParks and recreation
Capital outlay and capital projectsDebt service:
PrincipalInterest and fiscal chargesRefunding and bond issuance costs
Total expenditures
Excess of revenues underexpenditures
Other financing sources (uses):Transfers inTransfers outBonds issuedPayment to refunded bond escrow agentIssuance of capital leases
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapitalexpenditures
2001 2002 2003 2004
$ 10,119,597 $ 10,144,049 $ 10,433,904 $ 11,105,765515,549 533,498 576,363 561,948
1,556,846 1,374,629 1,337,959 1,463,983763,910 548,443 642,811 627,919137,322 133,258 142,507 101,215680,439 355,892 326,700 299,767
1,121,025 1,260,340 1,779,139 1,282,34293,250 57,706 50,053 42,87385,000 95,000 70,950 403,30199,529 100,385 101,860 97,564
683,907 790,405 991,385 1,280,006113,012 150,734 32,281 120,845
373 17,31938,332 3,471 79,877 81,7824,038 4,824 4,251 2,905
30,384 29,918 18,655 18,532
16,042,140 15,582,552 16,589,068 17,508,066
4,592,8425,902,145
942,9902,000,7142,140,285
2,300,000651,992
18,530,968
(2,488,828)
2,795,561(1,788,022)2,622,000
586,212
4,215,751
$ 1,726,923
17.04%
5,262,2395,588,030
758,8752,097,1802,902,335
2,572,000633,59151,446
19,865,696
(4,283,144)
2,878,054(1,963,610)4,745,000
(3,784,288)88,240
1,963,396
$ (2,319,748)
17.16%
4,186,3185,516,3131,382,5762,152,7162,242,796
2,930,000444,428
18,855,147
(2,266,079)
3,265,671(1,812,084)
350,000
1,803,587
$ (462,492)
19.59%
4,502,9855,853,8791,428,7312,131,7011,863,194
2,845,000337,942
18,963,432
(1,455,366)
3,617,236(1,843,335)
614,000
65,364
2,453,265
$ 997,899
19.20%
132
Fiscal Year2005 2006 2007 2008 2009 2010
$ 11,152,092 $ 11,198,463 $ 12,076,455 $ 13,210,172 $ 13,575,634 $ 14,460,784553,004 442,787 448,123 409,466 352,286 348,077
1,373,840 2,282,281 1,433,246 1,489,754 2,428,258 1,682,675705,538 720,481 836,308 848,048 776,554 707,656101,818 233,954 216,907 442,022 259,885 339,459470,251 904,927 819,395 667,398 380,785 300,090959,432 - 589,345
65,898 201,909 109,734 151,646 129,959 174,98083,247 92,000 225,989 232,742 238,077 463,952
120,560 102,778 100,430 97,731 106,695 105,7601,255,877 1,181,481 1,032,772 1,068,948 1,156,939 1,262,325
154,074 163,485 178,364 178,979 162,268 195,861141 48 32,698
97,583 85,340 136,095 108,430 139,584 136,3054,430 3,159 1,634 3,144 6,486 4,243
19,201 18,063 79,529 17,764 54,137 16,734
17,116,986 17,631,156 17,694,981 19,548,287 19,767,547 20,198,901
5,258,070 5,534,780 5,177,643 5,909,715 3,999,678 3,836,0716,040,126 6,585,437 6,831,003 7,314,638 10,264,218 10,217,2681,507,574 1,442,581 1,777,833 1,825,338 1,567,406 1,752,5812,157,063 2,160,162 2,307,451 2,429,367 2,934,845 3,121,0231,942,931 2,812,883 2,993,041 2,099,230 3,647,370 3,014,771
2,124,000 1,635,000 1,445,000 1,450,300 1,452,000 1,623,700279,701 270,201 318,197 323,200 349,881 359,944
21,693 195 31,780 28,253 4,341
19,309,465 20,462,737 20,850,363 21,383,568 24,243,651 23,929,699
(2,192,479) (2,831,581) (3,155,382) (1,835,281) (4,476,104) (3,730,798)
2,124,347 1,908,950 1,828,212 1,801,896 2,788,596 2,284,095(903,701) (804,778) (851,331) (611,180) (1,544,366) (850,595)
1,885,000 1,370,000 1,755,300 3,072,000 2,173,700 1,418,000o
161,973 553,576 143,488 249,622 735,307 107,450
3,267,619 3,027,748 2,875,669 4,512,338 4,153,237 2,958,950
$ 1,075,140 $ 196,167 $ (279,713) $ 2,677,057 $ (322,867) $ (771,848)
14.34% 10.11% 10.43% 9.25% 8.22% 9.54%
133
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134
CITY OF GARDEN CITY, KANSASGeneral Governmental Tax Revenues by Source
Last Ten Fiscal Years(modified accrual basis of accounting)
MotorFiscal Property Vehicle Sales Franchise OtherYear Tax Tax Tax Taxes Taxes Total
2001 $ 3,288,445 $ 508,717 $ 6,090,330 $ 763,910 $ 747,654 $11,399,0562002 3,416,999 522,150 5,967,700 548,443 770,698 11,225,9902003 3,786,725 536,777 6,110,402 642,811 576,363 11,653,0782004 4,054,769 584,591 6,449,808 627,919 578,545 12,295,6322005 4,215,809 642,697 6,289,182 705,538 557,408 12,410,6342006 3,972,128 652,469 6,562,890 720,481 453,763 12,361,7312007 4,337,090 650,440 7,079,556 836,308 457,492 13,360,8862008 4,400,476 725,920 8,076,358 848,048 416,884 14,467,6862009 4,963,808 753,351 7,843,971 776,554 366,790 14,704,4742010 5,181,820 761,578 8,505,990 707,656 359,473 15,516,517
¯ 2010
2009
2008
2007
2OO6
2005
2004
2003
2002
2001
$500,000 $2,500,000 $4,500,000 $6,500,000 $8,500,000 $10,500,000 $12,500.000 $14.500.000
mProperty Tax I=Motor Vehicle Tax resales Tax =lFranchise Taxes =Other Taxes
$16.500.000
135
CITY OF GARDEN CITY, KANSASAssessed Value and Estimated Actual Value of Taxable Property
Retail Sales and Retail Sales Tax RateLast Ten Fiscal Years
TotalAssessed Value Taxable
Fiscal Real Personal State Motor AssessedYear Estate Property Utility Vehicle Value
TotalDirectTaxRate
2001 $112,244,059 $ 10,593,418 $ 3,633,086 $ 21,931,724 $ 148,402,2872002 112,890,882 9,748,740 3,571,846 22,245,797 148,457,2652003 116,939,959 9,346,846 3,008,807 23,082,605 152,378,2172004 120,617,527 9,563,754 2,913,615 22,879,911 155,974,8072005 120,934,099 9,594,386 3,085,731 22,972,740 156,586,9562006 122,887,690 9,265,313 2,953,087 23,770,228 158,876,3182007 126,090,517 8,417,385 3,077,141 24,480,511 162,065,5542008 131,094,161 7,677,368 2,920,903 27,137,490 168,829,9222009 139,283,065 6,973,993 2,571,161 26,913,876 175,742,0952010 144,481,953 6,334,757 2,544,753 25,886,364 179,247,827
30.9730.9333.2733.9333.7033.7434.9034.9637.9837.85
Note: Property in the County is reassessed annually. The County assesses property at approximately 70 to 88 percentof actual value for all types of real and personal property. Estimated actual value is calculated by dividing assessedvalue by those percentages. Tax rates are per $1,000 of assessed value.
* Note: Taxable Retail Sales are from the Kansas Department of Revenue for Finney County. The City receives 1%on the sales from within the City limits plus a proportionate share of the County’s sales tax collections. The amountsshown in 2009 and thereafter are for the City of Garden City only.
$200,000,000
$190,000,000
$180,000,000
$170,000,000
$160,000,000
$150,000,000
$140,000,000
$130,000,000
$120,000,000
$110,000,000
$100,000,000
Total Assessed Value
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Year
136
Estimated AssessedActual Taxable Value as a
Value Percentage ofReal Estate Actual Value
$ 914,352,046 16.23 %931,202,021 15.94955,244,056 15.95991,826,169 15.73995,962,188 15.72
1,035,874,909 15.341,073,053,496 15.101,117,175,220 15.111,169,648,551 15.031,214,518,251 14.76
TaxableRetail Sales*
$ 44O,930,962438,220,872462,942,679468,255,563477,108,515509,956,935551,741,758629,398,070476,508,922492,834,585
Retail SalesTax Rate
1.001.001.001.001.001.001.001.001.001.00
Retail Sales
$700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200.000,000
$100,000,0002001 2002 2003 2004 2005 2006 2007
Year2008 2009 2010
137
CITY OF GARDEN CITY, KANSASProperty Tax Rates
Direct and Overlapping GovernmentsLast Ten Fiscal Years
Garden CityFiscal Employee Bond andYear General Benefits Recreation Interest Airport Building
2001 10.69 6.02 3.86 5.93 3.472002 10.13 7.27 4.00 5.18 3.352003 9.44 7.22 5.00 7.66 2.952004 10.90 8.62 4.89 6.79 1.732005 9.65 8.43 4.86 8.00 1.762006 8.21 9,73 5.01 7.06 3.012007 7.77 10.74 5.00 9.02 2.372008 7.85 11.07 5.01 8.76 2.272009 22.24 4.83 8.31 2.602010 22.07 4.98 7.98 2.82
1.001.001.001.001.000.72
Total
30.9730.9333.2733.9333.7033.7434.9034.9637.9837.85
Rates are expressed in mills.Overlapping rates are those of state, local and county governments that apply to property owners within the City ofGarden City.
24.00
22.00
20.00
18.00
16,00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
Garden City Property Tax Rates
~General ---e-- Employee Benefits
Recreation~ Bond and Interest~Airport
~ Building . .
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years
138
Stateof
Kansas
Overlapping Rates TotalGarden City Direct &
Finney Community OverlappingCounty College USD #457 Rates
1.50 35.69 18.53 47.59 134.281.50 33.77 19.69 45.02 130.911.50 35.72 19.59 44.49 134.571.50 41.10 21.53 43.13 141.191.50 35.99 19.45 43.34 133.981.50 36.03 19.54 38.38 129.191.50 35.31 19.22 37.38 128.311.50 36.02 19.20 36.54 128.221.50 36.33 19.36 36.42 131.591.50 37.32 20.18 45.20 142.05
Property Tax Rates by Entity
50.00
45.00
40.00
35,00
30.00
25.00
20.00
15.00
10.00
5.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years
----II-- Garden City
-~-~--- Finney County
~. USD #457
! + Garden City! Community! College
i -- ¯ -- State ofKansas
L
139
CITY OF GARDEN CITY, KANSASPrincipal Property Taxpayers
Current Year and Nine Years Ago
2010Percentage of
Taxable Total TaxableAssessed Assessed
Name Value Rank ValueWaI-Mart Real Estate Business Trust $ 2,625,000 1 1.71%Sam’s Real Estate Business Trust 1,762,148 2 1.15HD Development of Maryland (Home Depot) 1,419,110 3 0.93Garden City Plaza LLC 1,285,298 4 0.84Dayton Hudson Corp (Target) 1,139,018 5 0.74Southwestern Bell Telephone Co. 1,119,812 6 0.73Black Hills Corp. (Peoples Natural Gas) 1,090,951 7 0.71Art Mortgage Borrower Prop Co (Amedcold) 1,051,595 8 0.69Indy Lube Investments (Sears) 980,000 9 0.64Shriva Hotels 948,353 10 0.62DillonsWheat Lands MotelGarden City CoopInland Container Corp.CBL & AssociatesGarden City Plaza InnOther taxpayers 139,939,578 91.24
Total $ 153,360,863 100.00 % $ 126,470,563
TaxableAssessed
Value$ 2,487,142
1,087,9602,238,8321,092,199
2001Percentage ofTotal Taxable
AssessedRank Value
I 1.97 %
625
0.861.770.86
1,425,290 3 1.131,062,919 7 0.841,192,573 8 0.941,150,855 4 0.91
959,255 9 0.76840,526 10 0.66
112,933,012 89.30
100.00 %
Source: Assessed value data used to estimate applicable percentages provided by the Finney County Clerk.
Principal Sales Taxpayers by NAICS CodeCurrent Year and Nine Years Ago
2010 2001Percentage of Percentage of
Taxable Total Taxable Taxable Total TaxableRetail Retail Retail Retail
NAICS Code Sales Rank Sales Sales Rank SalesRetail Trade $ 357,271,198 1 72.49 % $ 262,637,334 1 71.24 %Accommodation and Food Services 50,843,444 2 10.32 34,461,630 2 9.35Information 22,101,934 3 4.48 18,108,951 3 4.91Wholesale Trade 12,654,980 4 2.57 8,519,957 6 2.31Other Services (except Public Administration) 11,324,351 5 2.30 13,630,475 4 3.70Utilities 9,562,639 6 1.94 6,549,965 7 1.78Construction 6,733,529 7 1.37 10,214,387 5 2.77Manufacturing 6,270,339 8 1.27 3,376,337 9 0.92Real Estate and Rental and Leasing 4,181,508 9 0.85 4,096,665 8 1.11Administrative and Waste 2,502,474 10 0.51 1,094,850 0.30Finance and Insurance 1,244,347 10 0.34Other cedes 9,388,189 1.90 4,744,509 1.27
Totalwithin Garden City $ 492,834,585 100.00 % $ 368,679,407 !00.00 %
Source: Estimated taxable retail sales by North Amedcan Industry Classification System (NAICS) code provided by the Kansas Department of Revenue,
140
CITY OF GARDEN CITY, KANSASProperty Tax Levies and Collections
Last Ten Fiscal Years
FiscalYear
2001200220032004200520062007200820092010
Total TaxLevy for
Fiscal Year
$ 3,781,1953,911,8614,198,9294,384,8024,484,6334,508,4114,724,4664,809,6135,387,7995,660,199
Collected within the CollectionsFiscal Year of the Levy in
Percentage SubsequentAmount of Levy Years
Total Collected fortheFiscal Yearofthe Levy
Pe~entageAmount of Levy
3,626,485 95.91 % $ 154,7103,744,483 95.72 167,3783,968,795 94.52 230,1344,059,527 92.58 325,2754,278,421 95.40 174,6334,266,334 94.63 206,1884,519,744 95.67 191,3884,642,217 96.52 153,5095,156,267 95.70 40,3705,412,175 95.62
$ 3,781,195 100.00 %3,911,861 100.004,198,929 100.004,384,802 100.004,453,054 99.304,472,522 99.204,711,132 99.724,795,726 99.715,196,637 96.455,412,175 95.62
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
2001 2002 2003
Total Tax Levy to Current Tax Collections
2004 2005 2006 2007 2008 2009 2010Year
i I~Fisca! Yea! ~! the Levy Amount j
141
FiscalYear
CITY OF GARDEN CITY, KANSASRatios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type ActivitiesGeneral Limited General
Obligation Obligation Capital Obligation Revenue RevenueBonds Bonds Leases Bonds Bonds Loans
2001 $ 13,832,000 $ 355,000 $ 577,824 $ - $ 265,000 $ 16,284,5612002 12,5!0,000 180,000 523,075 - 225,000 16,462,6502003 10,110,000 380,212 185,000 17,973,7612004 7,879,000 339,074 140,000 17,510,0302005 7,640,000 372,290 - 95,000 16,643,6882006 7,375,000 677,630 - 50,000 15,763,0412007 7,685,300 458,669 - 14,850,9192008 9,307,000 465,606 - - 13,906,1692009 10,028,700 939,690 - - 12,927,5952010 9,823,000 744,533 15,277,000
Note: Details regarding the City’s outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Demographic and Economic Statistics on page 149 for personal income and population data.
142
CapitalLeases
$
43,16022,165
TotalPrimary
Government
$ 31,314,38529,900,72528,648,97325,911,26424,773,14323,865,67122,994,88823,678,77523,895,98525,844,533
Percentageof Personal
Income *
15.27 % $14.6213.4711.6810.8510.209.369.80
11.387.29
PerCapita *
1,1141,0681,016
9039088288OO812821842
143
CITY OF GARDEN CITY, KANSASRatios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Less AmountsGeneral Available in
Fiscal Obligation Debt ServiceYear Bonds (1) Fund Total
Percentageof Estimated Total
Actual GeneralTaxable BondedValue of Debt Per
Property (2) Capita (3)
2001 $ 13,832,000 $ 291,849 $ 13,540,151 0.01 % $ 4822002 12,510,000 257,191 12,252,809 0.01 4382003 10,110,000 319,897 9,790,103 0.01 3472004 7,879,000 234,496 7,644,504 0.01 2662005 7,640,000 322,545 7,317,455 0.01 2682006 7,375,000 141,758 7,233,242 0.01 2562007 7,685,300 232,006 7,453,294 0.01 2672008 9,307,000 256,240 9,050,760 0.01 3112009 10,028,700 213,341 9,815,359 0.01 337
2010 (4) 25,100,000 189,267 24,910,733 0.02 714
Note: Details regarding the City’s outstanding debt can be found in the notes to the financial statements.
(1) Includes special assessments.(2) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on pages 136 through 137
property value data.(3) Population data can be found in the Schedule of Demographic and Economic Statistics on page 149.(4) In 2010, the City issued $15,277,000 of general obligation bonds for internal improvements and to refinance debt
in its utility funds due to the lower interest rates available on the general obligation bonds. Although these bondsare general obligation bonds, it is the intent of the City to use utility revenues to meet the debt service requirements.
Total General Bonded Debt per Capita
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(4)Year
144
CITY OF GARDEN CITY, KANSASDirect and Overlapping Governmental Activities Debt
As of December 31,2010
DebtGovernmental Unit Outstanding
Direct:City of Garden City $ 25,100,000
Overlapping:Finney County 5,875,000Garden City Community College 9,111,813USD #457 99,200,000
Total overlapping debt 114,186,813
Total direct andoverlapping debt $ 139,286,813
EstimatedPercentage
Applicable (1
100.00 %
34.0134.0155.27
EstimatedShare of
OverlappingDebt
$ 25,100,000
1,998,0883,098,928
54,827,840
59,924,856
$ 85,024,856
Source: Assessed value data used to estimate applicable percentages provided by the Finney County Clerk.Debt outstanding data provided by Finney County, Garden City Community College and USD #457.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of theCity. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borneby the residents and businesses of the City of Garden City. This process recognizes that, when considering theCity’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businessesshould be taken into account.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values.Applicable percentages were estimated by determining the portion of the County’s taxable assessed valuethat is within the City’s boundaries and dividing it by the County’s total taxable assessed value.
145
CITY OF GARDEN CITY, KANSASLegal Debt Margin Information
Last Ten Fiscal Years
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limitas a percentage of debt limit
2001 2002 2003 2004
$ 44,520,686 $ 44,537,180 $ 45,713,465 $ 38,788,684
13,832,000 12,510,000 10,110,000 7,879,000
$ 30,688,686 $ 32,027,180 $ 35,603,465 $ 30,909,684
31.07% 28.09% 22.12% 20.31%
Note: under state finance law, the City of Garden City’s outstanding general obligation debt should not exceed 30% oftotal assessed property value.
146
Fiscal Year2005 2006 2007 2008 2009
$ 39,928,469 $ 40,084,265 $ 40,616,113 $ 41,275,513 $ 42,561,015
7,640,000 7,375,000 7,685,300 9,307,000 10,028,700
$ 32,288,469 $ 32,709,265 $ 32,930,813 $ 31,968,513 $ 32,532,315
2010
$ 46,030,674
9,823,000
$ 36,207,674
19.13% 18.40% 18.92% 22.55% 23.56% 21.34%
Assessed value
Debt limit (30% of total assessed value)
Debt applicable to limit:General obligation bonds
Total net debt applicable to limit
Legal debt margin
$ 153,435,579
$ 46,O3O,674
$ 25,100,000
$ 25,100,000
$ 20,930,674
147
CITY OF GARDEN CITY, KANSASPledged-Revenue Coverage
Last Ten Fiscal Years
Sales Tax Revenue BondsFiscal Sales Tax Debt ServiceYear Collections Principal Interest Coverage
2001 $ 46,561 $ 35,000 $ 13,252 0.962002 50,049 40,000 11,800 0.972003 49,374 40,000 10,120 0.992004 52,469 45,000 8,400 0.982005 50,501 45,000 6,420 0.982006 48,325 45,000 4,395 0.982007 6,470 50,000 2,325 0.12
Note: Sales tax revenue bonds were paid off in 2007.
Water and Sewer LoansWater and Less: Net
Fiscal Sewer Charges Operating Available Debt ServiceYear and Other Expenses Revenue Principal Interest Coverage
2001 $ 5,120,919 $ 2,257,413 $ 2,863,506 $ 947,304 $ 515,851 1.962002 5,425,104 2,676,876 2,748,228 869,263 375,897 2.212003 5,240,443 2,465,964 2,774,479 850,988 555,432 1.972004 5,075,101 3,104,847 1,970,254 795,415 585,076 1.432005 5,384,839 3,351,478 2,033,361 866,342 604,795 1.382006 5,430,773 3,395,097 2,035,676 880,647 574,920 1.402007 5,376,144 3,543,845 1,832,299 912,122 543,015 1.262008 5,596,999 3,895,952 1,701,047 944,750 509,939 1.172009 6,286,255 4,102,088 2,184,167 978,574 475,650 1.502010 7,092,827 4,219,113 2,873,714 1,013,639 453,507 1.96
Note: Details regarding the City’s outstanding debt can be found in the notes to the financial statements.Water and sewer charges and other includes tap fees and other operating revenues. Operating expenses do not includeinterest or depreciation.
148
CITY OF GARDEN CITY, KANSASDemographic and Economic Statistics
Last Ten Fiscal Years
PersonalIncome
(amounts Per CapitaFiscal expressed in Personal MedianYear Population (1) thousands) Income (2) Age {3)
2001 28,116 $ 825,366 $ 20,5112002 27,999 806,369 20,4522003 28,190 831,616 21,2632004 28,707 870,163 22,1882005 27,295 891,582 22,8272006 28,832 902,781 23,4042007 28,743 971,130 24,5642008 29,095 932,034 24,0892009 29,093 839,960 20,9992010 30,685 1,088,104 35,460
28282828282828313130
EducationLevel in
Years ofFormal
Schooling
12131313131313131313
SchoolEnrollment (4)
7,7617,7577,6707,5437,4007,3917,2497,2187,4007,461
UnemploymentRate (5)
10.59 %4.103.704.404.203.603.303.303.704.20
Data Sources:(1) Bureau of the Census/City Planning Department(2) Bureau of Economic Analysis(3) State Departmerlt of Commerce(4) School District(5) Kansas Department of Labor
Note: Population, median age and education level information are based on surveys conducted during the last quarter ofthe calendar year. Personal income information is a total for the year. Unemployment rate information is an adjustedyeady average. School enrollment is based on the census at the start of the school year.
149
CITY OF GARDEN CITY, KANSASPrincipal Employers
Current Year and Nine Years Ago
Total
2010Percentage of
TotalEmployer Employees Rank Employment
Tyson Fresh Meats, Inc. (Iowa Beef Processors, Inc.) 3,100 1 22.05 %Unified School Distdct No. 457 1,100 2 7.82St. Catherine Hospital 677 3 4.82Garden City Community College 500 4 3.56WaI-Mart 450 5 3.20Finney County 325 6 2.31City of Garden City 290 7 2.06Dillons 260 8 1.85Beef Products, Inc. 216 9 1.54Brookover Feed Yards (Brookover Companies) 200 10 1.42Garden Valley Retirement VillageSunflower ElectdcOther employers 6,941 49.37
14,059 100.00
2001Percentage of
TotalEmployees Rank Employment
3,000 1 24.09 %1,231 2 9.88
650 3 5.22500 4 4.01450 5 3.61325 6 2.61290 7 2.33271 8 2.18
200 9 1.61162 10 1.30
5,375 43.16
% 12,454 100.00 %
Source: Chamber of Commerce; U.S. Department of Labor, Bureau of Labor StatisticsNote: based on employment of Finney County labor force; information not available for City only.
150
CITY OF GARDEN CITY, KANSASFull-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Full-time Equivalent Employees as of December 31,Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
General government 66 64 62 57 61 61 69 59 54 55Public safety:
Police:Officers 63 63 58 55 55 44 50 51 58 57Civilians 34 34 31 26 31 32 26 29 30 34
Fire:Firefighters and officers 25 29 29 30 32 30 34 38 34 36Civilians 1 1 1 1 1 1 1 1 1 1
Streets:Engineering 6 6 6 6 5 5 4 4 3 4Maintenance 17 17 17 17 16 16 16 16 16 16
Sanitation 15 13 13 14 14 14 14 14 20 23Culture and recreation 29 32 24 34 38 35 32 39 42 46Water 12 12 12 12 11 11 13 12 13 13Sewer 12 13 12 12 14 15 13 13 13 15Electdc 21 19 19 19 20 21 18 20 19 22.5
Total 301 303 284 283 298 285 290 296 303 322.5
Source: City Human Resource Office.
151
CITY OF GARDEN CITY, KANSASOperating Indicators by Function
Last Ten Fiscal Years
Function 2001 2002
Police:Physical arrests 3,690 3,819Parking violations 363 402Traffic violations 5,371 6,456
Number of calls answered 914 794lnspec~.ions 735 714
Streets:Street resurfacing (improved miles) 117 118Potholes patch/tons 693 891
Sanitation:Refuse collected (tons/day) 74 71Recyclables collected (tons/day) 1.53 1.50
Culture and recreation:Golf memberships issued 271 303Zoo admissions 211,542 195,841
Water:New connections 73 73Water mains breaks 4 8Average daily consumption
(thousands of gallons) 5,553 6,271
Sewer:Average daily sewage treatment
(thousands of gallons) 3,102 3,481
Electric:New connections 142 93Average daily usage
(thousands of kilowatts) 580 576
Fiscal Year2003 2004 2005 2006 2007 2008 20O9 2010
4,212 4,003 4,372 4,125 3,509 3,242 4,294 4,557626 479 261 243 181 211 344 471
7,276 8,261 6,390 4,751 3,962 3,405 5,239 7,170
764 704 669 731 707 779 751 7721,527 1,601 841 119 868 923 759 850
120 120 96 124 120 120 121 121535 768 543 329 733 614 580 430
72 74 71 64 72 70 71 691.26 1.83 1.69 2.22 4.00 3.80 4.48 7.21
274 179 154 196 260 271 166 249218,665 198,036 209,785 200,903 190,530 181,559 198,731 182,137
84 47 20 24 27 32 26 228 9 20 14 25 14 22 10
5,639 5,040 5,416 5,585 5,489 5,705 5,365 5,472
3,380 3,281 3,235 3,164 3,215 3,301 2,902 2,466
93 114 5 20 12 11 48 31
571 577 605 611 654 696 686 683
Sources: Various City departments.Note: Indicators are not available for the general government function.
152
CITY OF GARDEN CITY, KANSASCapital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal YearFunction 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Public safety:Police:
Stations 1 1 1 1 1 1 1 1 1 1Patrol units 26 24 24 25 26 26 26 30 30 30
Fire stations 2 2 2 2 2 2 2 2 2 2
Streets:Street (rniles) t 19 119 124 125 125 125 125 125 125 125Streetlights 1,873 2,120 2,738 3,066 2,571 2,559 2,556 2,665Traffic signals 27 27 30 30 29 29 30 30 30 33
Sanitation:Collection trucks 10 10 10 10 10 10 11 12 12 12
Culture and recreation:Park acreage 161.8 161.8 161.8 161.8 161.8 183 182 182 185 185Parks 1! 11 11 11 11 12 12 12 12 12Swimming pools 1 I 1 1 1 1 1 1 1 1Tennis courts 12 12 8 8 8 8 8 8 8 8Senior centers 1 1 1 1 1 1 1 1 1 1
Water:Water mains (miles) 126.01 135.84 136.17 138.12 138.84 139 139 139 139 147Fire hydrants 735 757 765 765 881 891 895 902 906 918Maximum daily capacity
(thousands of gallons) 27,000 27,000 27,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000
Sewer:Sanitary sewer (miles) 104.97 113.27 113.69 112.30 112.30 112 113 113 113 113Storm sewer (miles) 31 31 31 31 31 31 33 33 33 33Average daily sewage treatment
(thousands of gallons) 3,102 3,481 3,380 3,281 3,235 3,164 3,215 3,301 2,902 2,466
Electric:Number of distribution stations 9 9 9 9 9 9 8 8 8 8Miles of service lines 313 316 318 320 320 321 321 322 322 322
Sources: Various City departments.Note: No capital asset indicators are available for the general government function.* No indicators available.
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SINGLE AUDIT
SECTION
LEWIS,HOOPER&DICK,.,.ocertified public accountants INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL ovER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERSBASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMEDIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor,City Commissioners and City Manager
Garden City, Kansas 67846
405 North Sixth Street I P.O. Box 699Garden City, KS 67846
620-275-9267 1 800-627-0636Fax: 620-275-8936 1 www.lhd.com
CPAsCharles H. Claar, Jr, CPA
Theresa Dasenbrock, CPA, CFEDavid L. Hetrick, CPA
Steven D. Josserand, CPADonald R. Linville, CPAGary A. Schlappe, CPA
Rodney Van Norden, CPA
Lisa L. Axman, CPASue A. Bradley, CPA
Susan A. Burgardt, CPAShannon N. Euliss, CPA
Tracey Homm, CPA, CSEPKimberly A. Roth, CPAKristin J. Sekavec, CPALaura G. Voran, CPA
Monica J. Wilson, CPA
We have audited the financial statements of the governmental activities, the business-typeactivities, the aggregate discretely presented component units, each major fund, and theaggregate remaining fund information of the City of Garden City, Kansas, as of and for theyear ended December 31, 2010, which collectively comprise the City of Garden City’s basicfinancial statements and have issued our report thereon dated May 27, 2011. Our reportwas modified to include a reference to other auditors. We conducted our audit of theprimary government in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. The financialstatements of the Garden City Recreation Commission were not audited in accordance withGovernment Auditing Standards; accordingly, this report does not extend to that componentunit. In addition, other auditors audited the financial statements of the Garden City HousingAuthority, as described in our report on the City of Garden City, Kansas, financialstatements. This report does not include the results of the other auditors’ testing of internalcontrol over financial reporting or compliance and other matters that are reported onseparately by those auditors.
Internal Control Over Financial ReportingIn planning and performing our audit, we considered the primary government of the City ofGarden City’s internal control over financial reporting as a basis for designing our auditingprocedures for the purpose of expressing our opinions on the financial statements, but notfor the purpose of expressing an opinion on the effectiveness of the City of Garden City’sinternal control over financial reporting. Accordingly, we do not express an opinion on theeffectiveness of the City’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does notallow management or employees, in the normal course of performing their assignedfunctions, to prevent-or detect and correct misstatements on a timely basis. A materialweakness is a deficiency, or combination of deficiencies, in internal control such that thereis a reasonable possibility that a material misstatement of the City’s financial statements willnot be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purposedescribed in the first paragraph of this section and was not designed to identify alldeficiencies in internal control over financial reporting that might be deficiencies, significantdeficiencies, or material weaknesses. We did not identify any deficiencies in internalcontrol over financial reporting that we consider to be material weaknesses as definedabove.
The Honorable Mayor,City Commissioners and City Manager
Page 2
Compliance and Other MattersAs part of obtaining reasonable assurance about whether the primary government of the Cityof Garden City’s financial statements are free of material misstatement, we performed testsof its compliance with certain provisions of laws, regulations, contracts, and grantagreements, noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts. However, providing an opinion on compliancewith those provisions was not an objective of our audit and, accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or othermatters that are required to be reported under Government Auditin,q Standards.
We noted certain matters that we have reported to the management of the City of GardenCity in a separate letter dated May 27, 2011.
This report is intended solely for the information and use of the City’s management, theKansas Division of Accounts and Reports, and federal awarding agencies and pass-throughentities, and is not intended to be and should not be used by anyone other than thesespecified parties.
LEWIS, HOOPER & DICK, LLC
May 27, 2011
156
LEWIS,HOOPER&DICK..ocerflfled public accountants
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCEWITH REQUIREMENTS THAT COULD HAVE A DIRECTAND MATERIAL EFFECT ON EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCEIN ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable Mayor,City Commissioners and City Manager
Garden City, Kansas 67846
405 North Sixth Street [ P.O. Box 699Garden City, KS 67846
620-275-9267 [ 800-627-0636Fax: 620-275-8936 [ www.lhd.com
CPAsCharles H. Claar, Jr, CPA
Theresa Dasenbrock, CPA, CFEDavid L. Hetrick, CPA
Steven D. Josserand, CPADonald R. Linville, CPAGary A. Schlappe, CPA
Rodney Van Norden, CPA
Lisa L. Axman, CPASue A. Bradley, CPA
Susan A. Burgardt, CPAShannon N. Euliss, CPA
Tracey Homm, CPA, CSEPKimberly A. Roth, CPAKristin J. Sekavec, CPALaura G. Voran, CPA
Monica J. Wilson, CPA
ComplianceWe have audited the compliance of the primary government of the City of Garden City,Kansas, with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that could have adirect and material effect on each of its major federal programs for the year ended December31, 2010. The City of Garden City’s major federal programs are identified in the summary ofauditors’ results section of the accompanying schedule of findings and questioned costs.Compliance with the requirements of laws, regulations, contracts, and grants applicable toeach of its major federal programs is the responsibility of the management of the City ofGarden City. Our responsibility is to express an opinion on the primary government of theCity of Garden City’s compliance based on our audit.
The City of Garden City’s basic financial statements include the operations of the GardenCity Recreation Commission, which received no federal awards during the year endedDecember 31, 2010. Our audit, described below, did not include the operations of theGarden City Recreation Commission because the component unit was not subject to an auditin accordance with OMB Circular A-133. The City of Garden City’s basic financial statementsinclude the operations of the Garden City Housing Authority, which expended $373,775 infederal awards which is not included in the schedule during the year ended December 31,2010. Our audit, described below, did not include the operations of the Garden City HousingAuthority because the component unit was not subject to an audit in accordance with OMBCircular A-133.
We conducted our audit of compliance in accordance with auditing standards generallyaccepted in the United States of America; the standards applicable to financial auditscontained in Government Auditinq Standards, issued by the Comptroller General of theUnited States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Orqanizations. Those standards and OMB Circular A-133 require that we plan andperform the audit to obtain reasonable assurance about whether noncompliance with thetypes of compliance requirements referred to above that could have a direct and materialeffect on a major federal program occurred. An audit includes examining, on a test basis,evidence about the primary government of the City of Garden City’s compliance with thoserequirements and performing such other procedures as we considered necessary in thecircumstances. We believe that our audit provides a reasonable basis for our opinion. Ouraudit does not provide a legal determination on the City of Garden City’s compliance withthose requirements. The financial statements of the Garden City Recreation Commissionwere not audited in accordance with Government Auditinq Standards and the financialstatements of the Garden City Housing Authority were audited by other auditors; accordinglythis report does not extend to those component units of the City of Garden City, Kansas.
The Honorable Mayor,City Commissioners and City Manager
Page 2
In our opinion, the primary government of the City of Garden City, Kansas, complied, in allmaterial respects, with the compliance requirements referred to above that could have adirect and material effect on each of its major federal programs for the year ended December31, 2010.
Internal Control Over ComplianceThe management of the City Garden City, Kansas, is responsible for establishing andmaintaining effective internal control over compliance with requirements of laws, regulations,contracts, and grants applicable to federal programs. In planning and performing our audit,we considered the primary government of the City of Garden City’s internal control overcompliance with requirements that could have a direct and material effect on a major federalprogram in order to determine our auditing procedures for the purpose of expressing ouropinion on compliance and to test and report on internal control over compliance inaccordance with OMB Circular A-133, but not for the purpose of expressing an opinion on theeffectiveness of internal control over compliance. Accordingly, we do not express an opinionon the effectiveness of the City of Garden City’s internal control over compliance.
A deficiency in internal control exists when the design or operation of a control overcompliance does not allow management or employees, in the normal course of performingtheir assigned functions, to prevent or detect and correct noncompliance on a timely basis. Amaterial weakness in internal control over compliance is a deficiency, or combination ofdeficiencies, in internal control over compliance, such that there is a reasonable possibilitythat material noncompliance with a type of compliance requirement of a federal program willnot be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose describedin the first paragraph of this section and was not designed to identify all deficiencies ininternal control over compliance that might be deficiencies, significant deficiencies, ormaterial weaknesses. We did not identify any deficiencies in internal control overcompliance of the primary government that we consider to be material weaknesses, asdefined above.
This report is intended solely for the information and use of the City’s management, theKansas Division of Accounts and Reports, and federal awarding agencies and pass-throughentities, and is not intended to be and should not be used by anyone other than thesespecified parties.
LEWIS, HOOPER & DICK, LLC
May 27, 2011
158
CITY OF GARDEN CITY, KANSASSchedule of Findin.qs and Questioned Costs
December 31, 2010
II.
II1.
SUMMARY OF AUDIT RESULTS
A. Financial StatementsType of auditors’ report issued: Unqualified
Internal control over financial reporting as reported in the INDEPENDENT AUDITORS’REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIALSTATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITINGSTANDARDS:
Material weaknesses identified:Significant deficiencies identified:
¯ Noncompliance material to financial statements noted:
Federal Awards¯ Internal control over major programs as reported in
NoneNone reported
None
the INDEPENDENT AUDITORS’REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECTAND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROLOVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133:
Material weaknesses identified:Significant deficiencies identified:
Type of auditors’ report issued on compliance for major programs:
NoneNone reported
Unqualified
¯ Auditee qualified as low-risk auditee:
FINANCIAL STATEMENT FINDINGS
None
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None
159
The programs tested as major programs include:
Pro~lram
Airport Improvement ProgramAirport Improvement ProgramAirport Improvement Program
CFDA Grant Number Expenditures
20.106 3-20-0024-30 $ 1,457,28320.106 3-20-0024-29 116,11320.106 3-20-0024-28 56,134
Dollar threshold used to distinguish between type A and B programs: $300,000
No
Circular A-133: NoneAudit findings that are required to be reported in accordance with Section 510(a) of OMB
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160
CITY COMMISSION
JAMES R. BEHAN,Mayor
DAVID D. CRASE
JOHN DOLL
DAN FANKHAUSER
NANCY J. HARNESS
MATTHEW C. ALLENCity Manager
MELINDA A. HITZ, CPAFinance Director
RANDALL D. GRISELLCity Counselor
CITY ADMINISTRATIVECENTER
301 N. 8TM
P.O. Box 998GARDEN CITY, KS
67846-0998620.276.1160
FAX 620.276.1169~ ww.garden-city.org
Corrective Action Planand Comments on Audit Resolution Matters Relatin,q
to the Federal Award ProqramsDecember 31, 2010
May 27,2011
The City of Garden City, Kansas, respectfully submits the following corrective actionplan for the year ended December 31, 2010.
Name and address of independent accounting firm: Lewis, Hooper & Dick, LLCPO Box 699Garden City, KS 67846
Audit period: January 1, 20t0 through December 31, 2010
The findings from the December 31, 2010, Schedule of Findings and Questioned Costsrelated to the federal award programs are discussed below. The findings are numberedconsistently with the number assigned in the Schedule. Section I of the Schedule,Summary of Auditors’ Results, does not include findings and is not addressed.
I1. FINANCIAL STATEMENT FINDINGS
None
II1. FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None
IV. STATUS OF CORRECTIVE ACTIONS ON PRIOR FINDINGS
None
If there are any questions regarding this plan, please call Matthew C. Allen at 620-276-1160.
Sincerely,
Ma~hew C. AllenCity Manager
CITY OF GARDEN CITY, KANSASSchedule of Expenditures of Federal Awards
For the Year Ended December 31, 2010
Grant Title
Federal ProgramCFDA Grant Award
Number Clusters Number Amount
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTPassed through State Department of Commerce:
Community Development Block Grant(Note 3) 14.218
Emergency Shelter Grants Program 14.23187-BF-206
ESG-FFY2009
DEPARTMENT OF JUSTICEDirect Programs:
Bulletproof Vest Grant PartnershipProgram
Public Safety Partnerships andCommunity Policing Program
ARRA Edward Byrne Memorial JusticeAssistance Grant Program
Drug Enforcement State & LocalTask Force Grant Program
16.607
16.710
ARRA- 16.804
16.XXX
1121-0235
2009CKVVX0398
2009-SB-B9-2351
DEA Galen City
DEPARTMENT OF TRANSPORTATIONDirect Programs:
Airport Improvement Program 20.106Airport Improvement Program 20.106Airport Improvement Program 20.106
Passed through State Department of Transportation:Highway Planning and Construction 20.205State and Community Highway Safety 20.600State and Community Highway Safety 20.600State and Community Highway Safety 20.600
3-20-0024-303-20-0024-293-20-0024-28
28 TE-0294-01OP-0992-11OP-0992-10AL-9476-10
DEPARTMENT OF HOMELAND SECURITYDirect Programs:
Law Enforcement OfficerReimbursement Agreement Program 97.090
Passed through Kansas Highway Patrol:State Domestic Preparedness
Support Program 97.067
HST0208HSLR151
TOTAL FEDERAL EXPENDITURES - PRIMARY GOVERNMENT
69,700
51,583
150,000
100,400
31,146
1,568,6041,765,135
631,247
414,4006,5006,2005,931
630,000
45,074
Disburse-ments/
Expenditures
$ 1,38651,948
5,414
57,901
40,415
9,836
1,457,283116,11356,134
132,523642
6,2003,897
40,036
45,074
$ 2,O24,802
The accompanying Notes to Schedule of Federal Awards are an integral part of this statement.162
CITY OF GARDEN CITY, KANSASNotes to Schedule of Expenditures of Federal Awards
December 31, 2010
GeneralThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federalfinancial assistance programs of the primary government of the City of Garden City, Kansas. TheCity’s reporting entity is defined in Note 1 to the City’s basic financial statements. All federal financialassistance received directly from federal agencies as well as federal financial assistance passedthrough other government agencies is included on the schedule.
Basis of accountingThe accompanying Schedule of Expenditures of Federal Awards is presented using the modifiedaccrual basis of accounting, which is described in Note 1 to the City’s basic financial statements.
Community Development Block GrantReceipts included as program revenues are from payments received on a revolving loan fundoriginally established through Community Development Block Grant monies. The original programwas closed out in prior years. Loans receivable at December 31, 2010, totaled $219,203.
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